The Price of Bitcoin Surges Above $42,000
The price of bitcoin has risen above the $42,000 mark, reaching a level not seen in over a week. This surge in price has led to the liquidation of nearly $96 million worth of cryptocurrency short positions. In the past 24 hours alone, over $41 million of bitcoin leveraged positions were liquidated, with shorts accounting for over $37 million of that amount.
The largest digital asset by market capitalization has experienced a more than 5% increase in value within the past day and is currently trading at $42,085 as of 1:10 p.m. ET.
Bitcoin Options Expiry Boosts Bullish Sentiment
The recent uptick in bitcoin’s price coincides with the expiry of a significant number of bitcoin options. Prior to the expiry, there were 94,000 bitcoin options set to expire, with a put-call ratio of 0.51. This ratio is viewed as a bullish indicator for the asset.
Following the expiry, open interest in bitcoin options has significantly declined, reducing constraints on the digital asset within the derivatives market.
Bitcoin Correction Predicted by BitMEX Co-Founder
Arthur Hayes, co-founder of BitMEX, recently expressed his belief that bitcoin’s price would undergo a correction. In a blog post, Hayes predicted a 30% correction for bitcoin following its surge to around $48,000 after the approval of multiple spot bitcoin exchange-traded funds on January 10.
Hayes suggests that this correction could bring bitcoin down to the $33,600 level and establish a new support zone between $30,000 and $35,000.
“A 30% correction from the ETF approval high of $48,000 is $33,600. Therefore, I believe bitcoin forms support between $30,000 to $35,000,” Hayes wrote in his blog post.
Hot Take: Bitcoin Surges Above $42,000 Mark
The price of bitcoin has experienced a significant surge, surpassing the $42,000 mark. This increase in value has led to the liquidation of a substantial amount of cryptocurrency short positions. Additionally, the expiry of bitcoin options has provided a bullish sentiment for the asset. However, BitMEX co-founder Arthur Hayes predicts a correction for bitcoin’s price, potentially bringing it down to the $33,600 level. Despite this forecast, the current surge suggests strong momentum for bitcoin in the market.
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