The cryptocurrency market saw significant fluctuations last week as Bitcoin reached new historical highs, resulting in over $1 billion in position liquidations.
Record Highs for Bitcoin and Ether
Bitcoin hit a new record of $116,500 on Thursday after reaching $112,000 on Wednesday, while Ether surged to $2,990. According to CoinGlass, the total liquidation amount for short positions was $1.01 billion, including $570 million for Bitcoin and $206.93 million for Ether.
Crypto Industry's Response to Liquidations
The cryptocurrency market capitalization increased by 4.4% to $3.63 trillion. Analysts noted that many 'bears' were in disbelief. Crypto traders and analysts are actively discussing the implications of the liquidations, referring to it as a 'MASSIVE short squeeze.'
Divided Opinions Among Traders
Despite the records, some analysts expressed skepticism regarding Bitcoin's future stability. However, other traders are confident that prices may continue to rise, citing significant long positions at risk of liquidation.
Thus, the current state of the cryptocurrency market is characterized by significant volatility and active discussions among traders, underscoring the need for careful analysis of the situation.
