Cryptocurrency Market Cap Surpasses $3 Trillion as Bitcoin Rally Continues
The cryptocurrency market capitalization has surpassed $3 trillion for the first time since January, driven by Bitcoin's remarkable rally. According to CoinGecko data, the market cap has risen by more than $740 billion since the U.S. Treasury announced it would increase its repurchase of long-term Treasury bonds.
The rally has also led to a surge in leveraged trading in perpetual futures, with Coinglass reporting that the total open interest across all token-based contracts has climbed to nearly $160 billion, the highest level since late October last year. This indicates that traders are taking on more risk and accumulating positions.
As Bitcoin surged 8% during U.S. stock trading hours to reach $87,381, its highest level since January, over $920 million in short positions were liquidated. Analyst Rachel Lucas noted that the continued unwinding of short positions could trigger a short squeeze, putting further upward pressure on prices.