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• Smaller market capitalization tokens such as FTT, Serum, ZIL, and APT rallied, outperforming BTC and ETH.
• FTT, the token of the crypto exchange that failed in November, jumped 55%.
• Traders liquidated some $245 million worth of short positions.
Altcoin Rally Triggering Short Squeeze
The crypto market has been experiencing a surprising surge today, with smaller market capitalization tokens such as FTT, serum, ZIL, and aptos outperforming blue chips bitcoin (BTC) and ether (ETH).
FTT, the token of the crypto exchange that failed spectacularly in November, jumped 55% in the past 24 hours, although it is still down 96% over the past year. Serum (SRM), the native token of the Solana-based decentralized exchange, surged 28% on the day. ZIL, the Zilliqa blockchain project’s native token, increased 37%, while the native token of the Aptos blockchain, APT, known for its rocky launch and venture capital backing, gained 30%.
Traders were caught off-guard by the sudden surge, and in the past 24 hours, traders liquidated some $245 million worth of short positions. The sudden uptick in prices has been attributed to a renewed sense of optimism in the market, as well as the recent surge in the price of bitcoin.
The positive sentiment in the markets has been reflected in the daily trading volume of bitcoin and altcoins, which have increased significantly since the start of the year. This surge in trading volume has been key in driving the price of some altcoins higher, as traders have been buying and selling them, trying to capitalize on their rapid price movements.
The recent rally in altcoins also indicates a shift in sentiment among traders, as they move away from bitcoin and towards smaller market capitalization tokens. This shift could be a sign of a growing appetite for risk in the crypto markets, as traders look to capitalize on the potential of smaller tokens.
Overall, the crypto markets are showing signs of life once again, as traders take advantage of the renewed optimism and the rally in smaller tokens. With traders liquidating their short positions, the market could be set for further gains in the near future.