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The rapid upward price trajectory over the past 24 hours has resulted in nearly $30 million worth of Bitcoin short liquidation.
In the last 24 hours, over $119 million was liquidated in the cryptocurrency market. The majority of these liquidations, $73 million, were short positions. Bitcoin short positions accounted for the lion’s share of the damage, with more than $29 million worth of short liquidation in the last 24 hours, according to Coinglass data.
The extinction of short positions occurred as Bitcoin retraced its steps after breaking through the $38,000 level this morning. The largest digital asset by market capitalization reached a high of $38,246 in the last 24 hours. According to The Block’s pricing page, it’s currently trading for $37,690 as of 11:50 PM ET.
Bitcoin price rebounded again today. Image: The Block’s pricing page.
battle of bull and bear
Bitfinex analysts said one of the fundamental factors behind the recent rise in the price of the world’s largest digital asset by market capitalization “includes expectations of a pause in interest rate hikes by the Federal Reserve.”
“This pause is expected to maintain or lower benchmark overnight interest rates, which are among the highest in U.S. history. This situation will make risky assets such as Bitcoin more attractive to investors seeking higher returns in a low interest rate environment. “You can,” Bitfinex said. analysts told The Block.
But analysts added that there is also a different story at play. “Long-term Bitcoin supply continues to remain dormant, and during the current low period, aggressive market participants are chasing the price above the critical $37,500 level and making market purchases. This resilience has allowed Bitcoin to consistently trade above $37,500. This could also be reflected in Ethereum’s performance,” analysts said.
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