XRP experienced a significant surge of 13.6% within a 24-hour period, reaching $1.39. This surge extended its weekly gain to nearly 40%, surpassing both Bitcoin and Ethereum as the broader crypto markets rallied on Thursday. Bitcoin saw a 7.2% increase, reaching $77,393.67, while Ethereum gained 4.6% to $2,403.59, marking a 28.3% increase for the week.
The total crypto market capitalization reached around $2.68 trillion, with a 24-hour trading volume of $163.7 billion. Other major tokens also saw gains, with Solana rising by 5.2% to $91.55 and Hyperliquid increasing by 5.9% to $76.45. Both tokens posted stronger weekly gains than Bitcoin over the same seven-day period.
Short Sellers’ Squeeze
The market rally led to heavy losses for traders who were betting against the market. Data revealed that short positions incurred losses of $3.787 billion over four days, compared to $687 million in losses for long positions during the same period. The largest liquidation event occurred at 20:00 UTC on August 19, with $941 million in short positions being closed within four hours, marking a significant event in the crypto derivatives market.
Historical Comparison
Bitcoin’s recent surge has prompted comparisons to rare upside movements in the past. Data shows that Bitcoin has closed a trading day with a five-sigma move to the upside 14 times since 2013. Following such events, median returns were 4.8% after one week, 11.8% after one month, 15.1% after three months, and 84% after six months.
Market Outlook
Experts have highlighted key technical levels for Bitcoin, including resistance near $80,000 and potential support around $72,000. While some market participants anticipate a possible short-term pullback after the recent surge, the overall momentum in the market remains positive as we head into the weekend.
