Bitcoin has crossed the $116,000 mark, triggering massive liquidations in the derivatives market and raising questions about the equilibrium in the cryptocurrency space.
Overview of Events
Bitcoin reached a new historic high of $116,734, marking a 4.8% increase in the last 24 hours, according to Coinbase. This significant rise triggered a wave of liquidations totaling over $912 million within a day.
Liquidations of Short Positions
Short sellers were the main victims of the current surge, with $425 million liquidated in short positions within just one hour. Overall, more than $560 million were liquidated in that hour, confirming the cascading liquidation phenomenon.
ETF Influence and Institutional Interest
ETF inflows and renewed institutional demand fuel the current market strength. Joe DiPasquale, CEO of BitBull Capital, noted that 'we are probably on the way to even higher levels.' This highlights significant confidence among major market players.
The current financial movements in the Bitcoin market suggest a potential new phase of institutional accumulation of cryptocurrencies, though this process also carries risks associated with excessive dependence on ETF inflows and possible volatility.
