Bitcoin surged above $103,000, causing a wave of forced exits that resulted in the liquidation of over $900 million in the last 24 hours.
This represents a 200% increase in liquidations over the previous day, according to Coinglass data. Bitcoin (BTC) shorts accounted for $321 million in liquidations. At the same time, open interest increased by 5% to $133 billion, indicating that new leveraged bets are entering the market.The average crypto relative strength index has also risen to 70, signaling overbought conditions.
The spike in liquidations followed a rapid market rebound. With risk-on sentiment returning to international markets, the total value of the crypto market reached $3.3 trillion, its highest level since early March.
Bitcoin reached a peak of $103,460 during Friday’s Asian trading hours, up more than 6% in the past day. Ethereum (ETH) led the altcoin surge, climbing over 20% to reclaim $2,200 for the first time in two months, while Solana (SOL) and XRP (XRP) gained 8% and 5%, respectively.
A tentative U.S.-U.K. trade agreement that President Donald Trump hinted at on May 8 sparked the rally and gave international markets new hope. This is the case even though the Federal Reserve did not change interest rates on Wednesday, May 6. But according to the CME FedWatch tool, markets are pricing in a 70% chance of a rate cut by July and a 95% chance of at least one cut by October.
On-chain data also shows that Bitcoin investors are becoming more confident. Bitcoin’s Realized Cap reached a new all-time high of $890.7 billion, its third consecutive weekly record, according to a May 8 post on X by CryptoQuant contributor Carmelo Alemán.
This measure, which reflects the total amount of capital invested in Bitcoin based on its most recent price movement, points to a sustained accumulation trend by both short- and long-term holders.
While sentiment remains bullish, some caution is warranted. Santiment reported that Bitcoin’s break above the $100K “psychological level” is drawing significant retail attention. However, the firm warned that excessive bullish sentiment can often mark local tops.
Meanwhile, Real Vision’s CEO Raoul Pal noted that BTC dominance might have peaked, citing DeMark indicators. If accurate, this might signal the beginning of what he refers to as the “Banana Zone,” a period of outsized gains in altcoins. Crypto markets might be preparing for their next major upward leg if the current momentum continues.
