Bitcoin Surges and Triggers Liquidations
Bitcoin has experienced significant gains in the past 48 hours, breaking its stagnation period. In this timeframe, BTC has increased by over $3,000, resulting in a surge of daily liquidations surpassing $100 million.
The Fall and Rise of Bitcoin
After the US SEC approved several spot ETFs on January 10, Bitcoin faced a significant decline. Within two weeks, the cryptocurrency dropped by over $10,000 and hit a low of $38,500 on January 23. However, the bulls intervened and pushed BTC up to $43,000, where it remained for just over a week.
Breaking the Stagnation Period
Yesterday, Bitcoin began its ascent once again and reached $45,000 for the first time since the ETF approvals a month ago. In the past 12 hours, the cryptocurrency surged even further to surpass $46,000.
Impressive Gains for Altcoins
Not only has Bitcoin seen substantial growth, but several altcoins have also experienced impressive gains. SOL and ADA have particularly stood out among larger-cap cryptocurrencies.
Liquidations and Over-Leveraged Traders
The recent volatility and price increases have negatively impacted over-leveraged traders. According to data from CoinGlass, 37,000 traders were liquidated in the past day alone, resulting in a total value of wrecked positions amounting to $115 million. Short positions account for over $80 million of this amount. The largest liquidation occurred on Bitmex and involved the BTC/USD trading pair with a value exceeding $5 million.
Hot Take: Bitcoin’s Resurgence Sparks Liquidations and Altcoin Gains
Bitcoin’s recent surge has broken its stagnant phase, leading to impressive gains and triggering liquidations in the market. This volatility has caused significant harm to over-leveraged traders, resulting in millions of dollars’ worth of wrecked positions. However, this surge has not been limited to Bitcoin alone, as altcoins like SOL and ADA have also experienced notable growth. As the crypto market continues to evolve, traders must remain cautious and adapt their strategies accordingly.
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