The cryptocurrency market is experiencing a significant upturn today, with its total market capitalization jumping approximately 4.4% in the last 24 hours to reach $3.26 trillion. This impressive recovery comes after a period of volatility, driven primarily by easing geopolitical tensions and a cascade of short position liquidations. Increased trading volume further suggests a renewed wave of buyer interest across various crypto assets.
Market Rebound Amidst Ceasefire
Crypto prices began their upward trajectory during the late New York trading hours on June 23, following US President Donald Trump’s announcement of a “total ceasefire” between Israel and Iran. This pivotal development significantly eased fears of a prolonged Middle East conflict. The swift de-escalation restored investor confidence, mitigating concerns over potential oil supply disruptions through the Strait of Hormuz and encouraging a return to riskier assets.
Trump’s Announcement Spurs Confidence
In a post on Truth Social on Monday, President Trump declared that Israel and Iran had agreed to a full ceasefire, set to commence within hours. He referred to the recent conflict as “The 12 Day War,” emphasizing the sudden resolution. This announcement was a key catalyst, transforming market sentiment from risk-off to risk-on, and directly impacting cryptocurrency valuations as capital flowed back into the space.
Major Cryptos Lead the Gains
The ceasefire’s positive impact was immediately visible across the leading cryptocurrencies. Bitcoin climbed as high as $106,000 on June 24, while Ether edged above $2,400. Other prominent altcoins like XRP, Solana, and Dogecoin also witnessed significant gains, rising 7.2%, 8%, and 8.1% respectively. This broad-based recovery signals a renewed bullish momentum spreading across the entire market.
Massive Short Liquidations Fuel the Rally
Another powerful driver behind today’s market surge is a significant wave of short liquidations, triggering a substantial short squeeze. In the past 24 hours, over $471 million in crypto positions were liquidated across the market. Approximately $358 million of these represented short position liquidations, indicating that many traders were caught off guard by the sudden upward movement, forced to buy back assets to cover their positions.
Liquidation Data Breakdown
The scale of the short squeeze is evident in the specific liquidation data. Short Bitcoin leveraged positions alone accounted for $121 million in liquidations on the day. The largest single liquidation event occurred on Binance, involving an ETH/USDT position valued at $12.14 million. This magnitude of liquidation mirrors past events that have historically accompanied significant increases in total crypto market capitalization.
Total Crypto Market Cap Forms a Bull Flag
The combined market capitalization of all cryptocurrencies, denoted as TOTAL, has formed a bull flag pattern on the daily time frame. This technical pattern is typically a strong indicator of potential for further upside movement. Despite recent volatility, the market cap has robustly rebounded to $3.22 trillion, suggesting underlying strength.
Bull Flag Pattern Signals Further Upside
The TOTAL market cap is currently testing resistance at the flag’s upper boundary, which stands at $3.28 trillion and also aligns with the 50-day simple moving average (SMA). A high-volume breakout above this level could accelerate the current bullish momentum. The technical target for this chart pattern is set at $4.76 trillion, representing a potential 48% gain from current levels, supported by a sharp rise in the Relative Strength Index (RSI).
