The most valuable cryptocurrency by market cap Bitcoin spiked by over 12 percent on Sunday at the news of an Amazon insider revealing alleged plans to launch its own crypto. The market reacted positively, with BTC jumping above $38k and nearly reaching $40k, triggering massive liquidation of short positions to the tune of $1 billion.
This represents the first time in six weeks BTC price would record massive gains in one day after sluggishly trading sideways and remaining within the $32k - $33k regions, leaving speculators weary at the wobbling price positions. After losing more than half its all-time high price and shedding over $700 billion in market cap, BTC rebounded and liquidated traders who were betting that its price would remain bearish even as we approach summer.
According to data from bybt.com, around 85% of the liquidated Bitcoin positions were short trading positions. Ethereum came in the second spot with liquidations of more than $155 million worth of positions in the last 24 hours. XRP, Dogecoin (DOGE), Chainlink (LINK) and Ethereum Classic (ETC) also saw significant liquidations in the last 24 hours.
Consequently, at least more than 100,000 trading positions got liquidated within a single day, with the most significant single liquidation order happening on Huobi. As a result, Bitcoin is currently trading above $39,000 with a total market cap of $732 billion. In addition, BTC’s crypto market dominance jumped above 47.4%.
City AM, a London-based news outlet, was the first to report that Amazon is planning to accept Bitcoin payments by the end of 2021. Commenting on the latest Bitcoin rally and Amazon’s potential BTC plan, Simon Peters, Market Analyst at eToro, said: “Amazon’s tentative move has sent shockwaves through crypto markets. The firm is the largest e-commerce, web hosting and streaming provider in the world. In its full-year results for 2020, it recorded some $386 billion of revenue.”
“While too early to definitively say, the Amazon announcement could soon bear similarity to the breakout in prices caused by the announcement of PayPal that it would accept bitcoin on its platform in October 2020. When PayPal made its announcement, Bitcoin languished around $11,700, but the ensuing bull run took the crypto asset to an all-time high of $63,346,” Peters added.
As for DeFi tokens, Aave, Uniswap, and Sushiswap lead the charge, rallying double-digit gains within the past 24 hours. As of press time, Aave posted gains of 16.35 percent, Uniswap, 10.89 percent and Sushiswap, 14.30 percent. Although the DeFi industry’s total value locked (TVL) currently sits around $66 billion, it is about $30 billion down from its all-time high in May, at $90 billion.
Ethereum, on the other hand, was equally not left behind, currently gaining 10.10 percent within the last 24 hours. Moreover, as the network gears towards the London upgrade that will see it implement EIP-1559 and over 200,000 validators currently staking 6.6 million ETH worth $15.6 billion, Ethereum looks all primed up to spike even more in the coming weeks.