Bitcoin price holds above $62,000, volatility causes spike in liquidations
The bitcoin price has held above the $62,000 mark in the past 24 hours.The latest rally has impacted short positions, with over $169 million in bitcoin shorts liquidated.
The largest digital asset by market cap has increased by almost 6% in the past 24 hours, changing hands for $62,653 at 4:47 a.m. ET.
The price of bitcoin has increased by almost 6% in the past 24 hours. Image: The Block.
The spike in prices over the past day led to a substantial liquidation of short positions on centralized exchanges. The volatility resulted in the liquidations of more than $273 million in bitcoin positions, with the majority ($169.50 million) being shorts, according to CoinGlass data .
Major altcoins such as SOL, the native coin of the Solana network , and ether also posted daily gains of 16% and 4% respectively, according to The Block's Prices Page .
The overall crypto market saw over $388 million of liquidated short positions in the last 24 hours, contributing to a total of $751.33 million in liquidations across various centralized exchanges, data shows.
Liquidations take place when a trader's position is forcibly closed due to insufficient funds to cover losses. This situation arises when market movements are unfavorable to the trader's position, resulting in the depletion of their initial margin or collateral.
Analysts' projections
Bitfinex analysts updated their price projection for bitcoin , with a forecast that the largest crypto asset could reach a high of between $100,000 and $120,000 by Q4 of 2024.
"Our analysis forecasts a conservative price objective of $100,000-$120,000 to be achieved by Q4 2024, and the cycle peak to be achieved some time in 2025 in terms of total crypto market capitalization," Bitfinex analysts said in an email sent to The Block.
The analysts described the inauguration of multiple spot bitcoin ETFs in January as having introduced "passive demand" for bitcoin.
"Demand is coming from investors that are largely price agnostic. They perceive bitcoin as a store of value rather than a tradable volatile asset, which has been the case for several years before the introduction of the ETFs," the analysts added.
The GM 30 Index , representing a selection of the top 30 cryptocurrencies, has increased by 5.69% to 133.15 in the past 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Over $10 billion in market value evaporated in four trading days as CoreWeave (CRWV.US) debt risks trigger sell-off, but Deutsche Bank sees it as a buying opportunity
Deutsche Bank believes that the recent sell-off of CoreWeave lacks sufficient company fundamentals to justify it, and the sharp price correction has instead created a buying opportunity for investors.
Overnight US Stock Market | Inflation Pressure Continues to Rise, All Three Major Indexes Up, Dell (DELL.US) Down 6.8%
At the close of trading, the Dow Jones Industrial Average rose 557.51 points, or 1.08%, to 52,178.99 points; the S&P 500 Index gained 25.18 points, or 0.33%, to 7,744.12 points; and the Nasdaq Composite Index increased by 20.16 points, or 0.08%, to 26,713.03 points.
Interactive Brokers (IBKR.US) Q3 revenue increased by 16% year-on-year, announces over 70% increase in quarterly dividend
Driven by growth in net interest income and commission income, Interactive Brokers' Q3 net revenue increased by 16% year-on-year, with adjusted earnings per share rising by approximately 18% year-on-year.
CoreWeave default probability exceeds 60%! Jensen Huang "puts out the fire": Financing costs are declining, no need for NVIDIA to backstop
After Jensen Huang's speech, CoreWeave's stock price, which had fallen by as much as 9.5% in early trading, turned positive. The company's five-year CDS rose above 1,190 basis points during Thursday’s session, a historical high reflecting the cost of debt default protection, while yields on some of its corporate bonds have climbed above 15% to 16%. The five-year CDS spreads for Oracle, Amazon, Google’s parent company, and Meta are all at historically high levels. Deutsche Bank analysts believe that as the AI capital expenditure cycle is increasingly supported by debt rather than free cash flow, investors must place greater emphasis on signals from the credit market. Overall, while AI-related financing costs are not yet excessively high, worrying signs have begun to emerge.
Crypto prices
More
