Bitcoin (BTC) has surged above the crucial $30,000 level for the first time since June 2022, causing heavy losses for traders who were betting on a decline. Over 87% of all futures trades that were liquidated in the past 24 hours were short, or bets against a rise in prices. Losses from these trades amounted to some $145 million in the process. Crypto exchanges, including Huobi, Binance, and OKX, saw massive liquidations on their platforms.
The recent strength in bitcoin can likely be attributed to worsening economic conditions, which may lead to the adoption of a decentralized asset among investors, some experts suggest. Bitcoin’s strength compared to traditional markets shows that investors are increasingly shifting their capital into bitcoin, choosing it instead of traditional investments to build their wealth.
“The fact that today’s rally did not have a clear catalyst is a bellwether of bitcoin’s newly bullish market conditions and strong investor confidence. Bitcoin’s ongoing strength suggests that bitcoin is emerging from the so-called ‘crypto winter’ into a new phase of strength and renewed interest from retail and institutional investors,” said Alex Adelman, CEO of bitcoin rewards app Lolli.
While large liquidations can signal the local top or bottom of a steep price move, it’s important to note that bitcoin’s price is still volatile and can experience rapid fluctuations. Investors should exercise caution and do their own research before investing in any asset.
