Bitcoin, the flagship cryptocurrency asset, briefly traded above the $40,000 trading zone late last night, after falling below the $35,000 trading zone due to Russia’s invasion of Ukraine. Bitcoin rose more than $5,000, or 16.80 percent, from its low of $34,459 yesterday to trade as high as $40,250 in what many are calling a relief rally.

Markets around the world were affected by Russia’s special military operation in Ukraine, which marked the start of a full-scale invasion of its neighbor. The cryptocurrency market was not spared, as its market capitalization fell below $1.5 trillion. However, it has recovered and is now worth $1.72 trillion at the time of writing.

Altcoins have also recovered from yesterday’s losses, as expected. Ether, for example, which briefly fell below the $2,300 mark, quickly recovered alongside Bitcoin and now trades at $2,603 per coin.

As of the time of writing, the top 20 cryptocurrencies are seeing gains of 10% or more, with Terra’s LUNA token leading the charge with a gain of more than 20%. The token also made it into the top ten in terms of market capitalization, and it is currently ranked #9 with a market capitalization of $25.3 billion.

The late-afternoon rally seen at the start of the Asian session means that the cryptocurrency market has fully recovered from the losses seen earlier in the day yesterday.

The rally is largely due to Bitcoin reaching a critical support zone, where many buy orders were filled. According to Coinglass data, 94,769 traders were liquidated in the last 24 hours, totaling $439.61 million in liquidations. Longs accounted for $155.45 million, or 35.36 percent of the total, with shorts accounting for the remainder.

This also indicated that the majority of liquidation occurred near the end of the New York/beginning of the Asian session, when Bitcoin experienced a significant price increase.

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