Why is the crypto market up today?

Key Points:

• The crypto market is up 4.4% on June 24, with its capitalization rising to $3.26 trillion.

• Over $358 million in crypto longs were liquidated in the last 24 hours.

• The crypto market cap TOTAL chart is flashing a bull flag.

The cryptocurrency market is up today, with the total market capitalization rising by approximately 4.4% in the last 24 hours to reach $3.26 trillion on June 24.

The total 24-hour trading volume across all crypto assets has also increased by 10% to $150 billion, suggesting increasing buyer interest in crypto assets.

Bitcoin leads market recovery

Crypto prices began rising during the late New York trading hours on June 23 after US President Donald Trump announced a “total ceasefire” between Israel and Iran, easing fears of a prolonged Middle East conflict.

In a Monday post on Truth Social, Trump said that Israel and Iran have agreed to a full ceasefire set to begin within a few hours, potentially ending what he referred to as “The 12 Day War.”

“It has been fully agreed by and between Israel and Iran that there will be a complete and total ceasefire (in approximately 6 hours from now).”

The 12-day conflict, marked by Israeli strikes on Iranian nuclear sites and retaliatory missile attacks, had triggered risk-off sentiment, pushing Bitcoin (BTC) and top-cap altcoins like Ether (ETH) and Solana (SOL) lower.

The ceasefire, mediated through Qatari and US diplomatic channels, has restored investor confidence, reducing concerns over oil supply disruptions through the Strait of Hormuz.

This reprieve has restored risk-on sentiment, with Bitcoin climbing as high as $106,000 on June 24 and Ether edging above $2,400. XRP (XRP), SOL and Dogecoin (DOGE) also witnessed significant gains, up 7.2%, 8% and 8.1%, respectively. 

With the war possibly over, capital is flowing back into risk assets like cryptocurrencies, with today’s recovery signaling renewed bullish momentum across the market.

Massive short liquidations fuel price surge

Another driver of today’s rally is a wave of short liquidations that have triggered a significant short squeeze.

In the past 24 hours, over $471 million in crypto positions have been liquidated across the crypto market, with approximately $358 million representing short position liquidations.

Short Bitcoin leveraged positions totaling $121 million have also been liquidated on the day.

The largest single liquidation occurred on Binance, where an ETH/USDT position worth $12.14 million was liquidated. 

Related: Price predictions 6/23: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, HYPE

The magnitude of this liquidation mirrors the May 21 and May 23 liquidation events, where more than $451 million in short-leveraged positions were liquidated, accompanying a 7% increase ($230 billion) in the total crypto market capitalization over the same period.

The surge in liquidations reflects heightened volatility as traders reassess risks following the ceasefire news. The short squeeze has played a crucial role in amplifying the current rally, particularly for Bitcoin, which has led the market with its charge above $105,000.

Total crypto market cap forms a bull flag

TOTAL, or the combined market capitalization of all cryptocurrencies, has formed a bull flag pattern in the daily time frame, signaling potential for further upside. Despite recent volatility, the market cap has rebounded to $3.22 trillion.

It is currently testing resistance from the flag’s upper boundary at $3.28 trillion — also the 50-day simple moving average (SMA), as shown in the chart below.

A high volume move above this level could accelerate the current bullish momentum toward the technical target of the prevailing chart pattern at $4.76 trillion, or a 48% gain from the current level.

This optimistic outlook is supported by a sharp rise in the relative strength index (RSI), which has climbed to 50 from 35 over the last 48 hours, indicating increasing bullish momentum.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.