Bitcoin (BTC) Skyrockets Past $71,000 as $175 Million in Shorts Get Liquidated
Bitcoin has skyrocketed past $71,000, marking a 5% increase within the last 24 hours.This surge comes after the cryptocurrency broke through the crucial $70,000 resistance level.
As a result, millions in short positions have been liquidated, further fueling Bitcoin's rapid price jump.
Massive Liquidations Amplify Bitcoin (BTC) RallyAs Bitcoin surged past $71,000, shorts (bets on asset price declines) faced massive liquidations. In just 12 hours, over $175 million in short positions were liquidated, with Bitcoin alone seeing $73 million in short liquidations.
Ethereum (ETH) shorts also suffered from this bullish price move, losing $39 million. This liquidation triggered a price spike as traders rushed to close their losing bets.
Darius Sit, co-founder of QCP Capital, explained that shorts positioned around the $70,000 mark were wiped out.
According to TradingView, he shared via message, We see some shorts against the 70k getting liquidated as the market seems to be pricing in increasing certainty of a Trump victory.
Data from CoinGlass shows that this liquidation event added fuel to Bitcoin's rapid ascent. This large-scale liquidation event has driven Bitcoin higher, pushing it well above the $70,000 resistance level.
Traders who bet against Bitcoin's rise had to cover their positions, adding more buying pressure to the market.
Whales and ETF Inflows Fuel the SurgeBitcoin's rally didn't happen in isolation. Behind the scenes, large traders, or whales," played a significant role in pushing prices upward.
Analysts from CryptoQuant noted that these whales, especially on Binance, were net buyers during Asian trading hours. Their activity contributed to the increased buying demand for Bitcoin, driving its price higher.
Additionally, Bitcoin exchange-traded funds (ETFs) saw a major boost. According to CoinGlass, there has been a net inflow of 47,000 BTC in the past two weeks.
This increase in ETF holdings indicates strong institutional demand for Bitcoin.
Broader Crypto Market Follows Bitcoin's LeadBitcoin's surge has not only impacted its own price but also sparked a broader rally across the cryptocurrency market. Major cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB) surged following Bitcoin's lead.
DOGE rose by 15%, driven in part by increased popularity surrounding Donald Trump, while SHIB gained 8%. Ethereum (ETH) followed with a 4.73% increase, and other large-cap coins like Cardano (ADA), Solana (SOL), and Binance Coin (BNB) also jumped by over 2.60%.
CoinMarketCap'sdatashows that the total crypto market cap increased by 3.95% to $2.41 in 24 hours. This rally across various coins signals a shift in market sentiment as traders appear optimistic ahead of the U.S. elections.
U.S. Elections Stir Optimism in Bitcoin's FutureTraders are closely watching the upcoming U.S. elections, which are now less than a week away. According to Bloomberg, manybelievethe outcome will serve as a bullish catalyst for Bitcoin, regardless of who wins.
Traders are already preparing for Bitcoin to touch new highs following the elections. In addition, Options traders, in particular, are betting on Bitcoin hitting $75,000 by November.
Crypto traders have always viewed a Republican victory, especially one led by Donald Trump, as favorable for the crypto industry. Trump's pro-Bitcoin stance and promises to make the U.S. a Bitcoin powerhouse have been key factors driving this belief.
However, some analysts argue that even if Kamala Harris wins, Bitcoin could still benefit. Although Harris has not explicitly supported crypto like Trump, her administration has promised regulations to protect consumers, which could still support the overall market.
With both whale activity and ETF inflows pushing demand, alongside optimistic sentiment surrounding the U.S. elections, Bitcoin's recent surge could be just the beginning of a larger price move.
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