In this market, where investors are looking for any sign that hawkish monetary policy moves could be on their way out, investors appear to have seen enough Wednesday to spark a rally in some higher-risk assets. While the major stock indexes' results in morning trading were mixed, cryptocurrency prices surged, with many top tokens touching multiweek highs.
Among the large-cap cryptos, Cardano (CRYPTO: ADA) , Solana (CRYPTO: SOL) , and Polkadot (CRYPTO: DOT) were some of the biggest gainers. As of 11:15 a.m. ET, they were up 8.7%, 7.9%, and 6.3%, respectively, over the prior 24 hours.
These moves were led by the largest short liquidations that crypto investors have seen since July 2021. A short liquidation is the unwinding of a leveraged short position. Thus, calls for a continued short squeeze in the crypto sector have increased. As more leveraged short positions are liquidated, new investors may be enticed to take a bullish stance on these higher-risk digital assets.
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Why Top Cryptocurrencies Cardano, Solana and Polkadot Are Rising Today