It was a bad day for the bears as Bitcoin rose to a seven-month high, triggering massive liquidations.
Posted on October 29, 2024 at 4:00 AM EST.
Bitcoin breached the $71,000 mark on Monday, rising 5% to March levels when the digital currency traded at all-time highs.
This price movement triggered a wave of liquidations on major crypto exchanges, hitting short sellers the hardest.
Data from CoinGlass show In the 24 hours leading up to this article, a total of $238 million was liquidated, of which $176 million came from short positions alone.
Bitcoin traders confirmed that $35.5 million was mostly liquidated from short positions.
It was a similar story for Ethereum traders, who recorded total liquidations of $11.95 million.
Liquidation occurs when a trader's leveraged position is forcibly closed by the exchange due to insufficient margin or collateral. Binance accounted for more than half of all liquidations on the exchange.
According to Mignolet, an analyst at CryptoQuant, Bitcoin price action is currently being driven by the Binance whale, which increased its trading activity two weeks ago.
with quick take published Mignolet pointed out late Sunday that the decline in Coinbase's premium gap is a clear indication of whale intervention.
The US spot Bitcoin exchange-traded fund (ETF) is also likely to have contributed significantly to the positive price movement.
coin share Found Nearly $1 billion flowed into Bitcoin ETFs last week, bringing year-to-date inflows to all digital asset investments to $27 billion, nearly triple the 2021 record.
James Butterfill, head of research at CoinShares, said “political factors in the U.S.” may also be a driver of the recent surge in inflows.
As the US presidential election approaches, decentralized betting markets such as Calci and Polymarket are showing that the odds of Donald Trump winning are currently higher than the odds of Kamala Harris winning in the Oval Office. There is.
