Cryptocurrency liquidation amount exceeds $235 million, Bitcoin price reaches $70,000

Bitcoin It was the first time in more than a month since April 12th that it exceeded the $70,000 mark. of price The largest digital asset is currently worth $70,225 per coin, up 6% in 24 hours, according to CoinGecko data. As a result, crypto liquidations are surging, and short positions are dominating the carnage.

The asset rally came as investors poured money back into the newly approved Spot Bitcoin exchange-traded fund (ETF) after weeks of outflows. The impact on the new fund, which gives investors the largest exposure to digital assets, reached nearly $1 billion, according to data on Monday.

The rush to invest comes after the U.S. Bureau of Labor Statistics reported last week that inflation was not as high as expected in April.

Low inflation encourages people to invest in assets like Bitcoin because it means the Federal Reserve is more likely to lower interest rates, which are at a 23-year high.

The skyrocketing price of cryptocurrencies today means that the prices of most other coins and tokens are skyrocketing. Therefore, traders betting that the price of digital assets will fall have had their positions liquidated, with more than $235 million of positions liquidated in the past 24 hours, according to data from Coinglass.

Approximately $63 million of this was short positions in Bitcoin alone, part of a total of $173 million in short positions in cryptocurrencies liquidated in the past 24 hours.

Bitcoin hit a new all-time high of $73,737 in March. It is now just 5% below that level. The coin's surge appears to be largely due to new Bitcoin ETFs that trade on traditional stock exchanges and allow investors to buy shares linked to the asset's price.

However, Ethereum may also be left feeling the effects of the sudden price spike it just experienced on Monday afternoon, amid renewed speculation from analysts that approval of an Ethereum spot ETF is likely to happen this week. .

Edited by Andrew Hayward