Leveraged bets against Bitcoin (BTC) have lost more than $150 million in the past 24 hours, with the price rising 10% to record its biggest single-day gain since October, with solid new bullish momentum This spurred calls for market prices.
Bitcoin briefly breached the $57,000 level early Tuesday, the highest since November 2021, due to multiple factors including increased volume in spot Bitcoin exchange traded funds (ETFs) and buying by institutional investors. reached a high price.
Short covering may have contributed to the asset’s strength since the beginning of this week. Since Sunday, short bets have lost more than $180 million, according to CoinGlass data. Still, open interest jumped from $48 billion to nearly $54 billion, indicating an increase in bullish bets as traders anticipated volatility.
Liquidation is when an exchange forcibly closes a trader’s leveraged position due to insufficient margin. This occurs when a trader lacks sufficient funds to sustain a trade.
Large liquidations may indicate local highs or troughs of rapid price movements, and traders may be able to take positions accordingly.
The soaring price of Bitcoin has energized the broader cryptocurrency market. Ether (ETH), Solana’s SOL, and Cardano’s ADA are up 8% in the past 24 hours, while Bitcoin’s Layer 2 token Stax (STX) has soared over 25%.
Market participants said Bitcoin is firmly in a “new bull market” and could see a significant rally as the expected halving approaches.
“Bitcoin’s decisive rally effectively signals the beginning of a new bull market,” Loli founder Alex Adelman said in an email to CoinDesk. “The major price movement was driven by sheer positive sentiment in the market and sustained Bitcoin ETF inflows, which rose to new daily highs on the day.”
Adelman added, “Bitcoin’s historically high price halving is just over a month away, and there is a big upside ahead for Bitcoin.”
Halving is part of the Bitcoin network’s code to reduce inflationary pressures on the cryptocurrency, reducing the reward for successfully mining a Bitcoin block by half. This makes it much more difficult to acquire and mine new Bitcoins, which has historically led to bull markets.
