Bitcoin BTC +0.65% 's sudden upward price trajectory in the past 24 hours has caused almost $30 million in bitcoin short liquidations.

Over the past 24 hours there were over $119 million liquidations in the cryptocurrency market. Of these liquidations, the vast majority, $73 million, were short positions. Bitcoin short positions took the largest share of the damage, with over $29 million in short liquidations in the past 24 hours, according to Coinglass data.

The wipe out of short position came as bitcoin broke through the $38,000 mark earlier today before retracing its steps. The largest digital asset by market capitalization reached a high of $38,246 in the past 24 hours. It is now changing hands for $37,690, at 11:50 p.m. ET, according to The Block's Price Page.

The price of bitcoin rallied again today. Image: The Block's Price Pages.

A battle of bulls and bears 

Bitfinex analysts said that one of the fundamental factors behind the recent price appreciation for the world's largest digital asset by market cap, "includes the anticipation of a pause in the Fed's interest rate hikes."

"Such a pause is expected to maintain or lower the benchmark overnight interest rate, which is one of the highest in US history. This situation could make risk assets like bitcoin more attractive to investors seeking higher returns in a lower interest rate environment," Bitfinex analysts told The Block.

However, the analysts added that other narratives are at play. "Long-term bitcoin supply has continued to remain dormant while the lower timeframes currently show aggressive market participants chasing price, market buying, above the crucial $37,500 level. This resilience might also be reflecting in ether's performance, along with bitcoin steadily trading above $37,500." the analysts said.