The price of Bitcoin has risen more than 11% over the past seven days, but recent price movements have led to a surge in liquidations.
Bitcoin’s rise in value last week was driven by spot market traders, according to Bitfinex head of derivatives Jag Kooner. “The vast majority of purchases have been from spot buyers, meaning market orders from aggressive buyers in the spot market,” Kooner told The Block.
Volatile price action over the past 24 hours has caused cryptocurrency market liquidations to surge to a total of more than $111 million, according to Coinglass data. In the last 24 hours, 42,122 traders were liquidated, with over $30 million worth of Bitcoin leverage positions liquidated.
Bitcoin price has fallen by almost 1% in the last 24 hours. Image: Block.
The largest digital asset by market capitalization was trading at $47,894 at 8:41 a.m. ET, according to The Block’s pricing page.
Increases BTC supply in profits
The upward trajectory of Bitcoin’s price has increased the profitable proportion of the digital asset’s circulating supply. This is an increase of approximately 14% from the lowest level of 79% in early February.
However, one market indicator suggests that Bitcoin investors are holding on to their assets in anticipation of future price increases due to a combination of factors, such as the upcoming block reward halving.
Bitcoin exchange holdings fell by more than 0.5% last week, according to CryptoQuant data.
Bitcoin 
BTC
+0.06%
Foreign exchange reserves decreased last week. Image: CryptoQuant.
CryptoQuant According to the data Since last Monday, more than 11,000 bitcoins have been moved from exchanges to cold storage, with Bitcoin exchange holdings hitting a yearly low on Saturday. The outflow reduces liquidity supply and suggests long-term holders are betting on future bullish price movements.
Investors can expect a variety of price catalysts to impact Bitcoin supply and demand dynamics. These factors include the possibility of a Bitcoin halving in April and the possibility of a U.S. Federal Reserve (Fed) interest rate cut in May.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.