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Bitcoin Surpasses Expectations: Record High of Over $111,000
Amidst initial skepticism during its downturn, Bitcoin has astoundingly surpassed its previous all-time high. The cryptocurrency not only recovered but soared to a groundbreaking value of approximately $111,800.
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Bitcoin’s recent upward momentum has been impressive, as illustrated in the chart below:
The cryptocurrency’s price surpassed the former high of about $109,200. Earlier this month, Bitcoin appeared poised at $103,000, but momentum stalled, leading to a period of stagnation. However, a robust surge over the past few days has propelled Bitcoin beyond its previous limits.
While other altcoins have experienced their own upward trends, Bitcoin has notably outperformed many of the leading assets in terms of weekly gains. For instance, Ethereum’s increase of around 3.5% pales in comparison to Bitcoin’s impressive 8.5% rise.
Massive Cryptocurrency Liquidations Exceed $500 Million Within 24 Hours
Recent data from CoinGlass highlights the market’s volatility, primarily driven by Bitcoin’s significant movement. This has led to numerous positions on derivatives exchanges being forcibly closed. Liquidation occurs when a contract’s losses surpass a predefined threshold set by the trading platform.
The recent liquidation data indicates a substantial impact across the cryptocurrency market, with a total of $516 million in liquidations over the last day. Given the bullish trend, a significant portion of these were short positions, accounting for approximately 64% of the total liquidations, equating to $334 million.
Bitcoin and Ethereum have been the primary contributors to this liquidation wave, as they often are during such events.
The Phenomenon of Short Squeezes
This major liquidation event is termed a “short squeeze,” as short positions bore the brunt of the impact. Despite the considerable liquidations, traders remain undeterred, as evidenced by the rising Bitcoin Open Interest.
The Open Interest metric, which tracks the total number of open positions on all derivatives platforms, has surged to $81 billion, a significant jump from May 18th’s $65 billion.
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