Bitcoin (BTC) added more than 11% in the past 24 hours to trade above $24,700 on Tuesday, retracing all of the weekend’s losses and setting a three-week high. The move may come as a surprise to investors who would have bet on falling prices after the suspension of two cryptocurrency-backed banks last week in the USD Coin (USDC), the main currency said. strong, depegged.

More than $100 million in bitcoin shorts, or bets against rising prices, were liquidated on Monday. This is the highest amount that has been released since Jan. 14, when the increase in bitcoin caused $ 500 million across several crypto futures contracts.

Monday’s price increase means that 78% of bitcoin futures traders have losses, according to data from Coinglass. The losses were mostly spread across crypto exchanges Binance, OKX, Huobi and Bybit.

Liquidation refers to when the exchange closes at the seller’s discretion due to the loss of the original part of the customer or is complete. This happens when the trader is unable to meet the requirements for the target position (not enough money to keep the trade open).
Large selloffs can indicate a high or low level of a large price range, which can allow traders to position themselves. The price of Bitcoin rose as US Treasuries fell sharply on Monday, fueling fears of similar banks in the region following the collapse of Silicon Valley Bank last week.

As such, the data shows that price action is determined by the spot. On Tuesday, open interest in futures remained below the levels seen on March 9, when bitcoin traded above $23,500, even as bitcoin retook all losses, indicating that the product and price are leading traders buy bitcoin instead of futures movers. Elsewhere, crypto exchange Binance announced on Monday that it will exchange $1 billion of its stablecoin binance USD (BUSD) for bitcoin, ether (ETH), bnb coin (BNB) and other unspecified tokens – which can also contribute to price increases.