After weeks of consolidation between $ 10,000 and $ 11,000, Bitcoin has surged to $ 11,700, with the leading cryptocurrency rising 3% in the past 24 hours alone, to $ 11,654 as of writing. Bitcoin has gained about 10% in value in the last five days.
With this latest surge, millions of dollars worth of assets were liquidated on the futures platform. According to the data provided by Skew.com, more than $ 3 million liquidated only on the BitMEX crypto currency exchange. Because BitMEX is only a small part of the cryptocurrency futures industry, it is fair to say that along with other platforms, millions have been liquidated.
According to the crypto derivatives follower ByBt, the proportions of the leading futures exchanges to funds turned into a positive trend for the first time in a few weeks. This suggests that long positions are becoming more aggressive than short positions. As long as the funding rate remains low, we can say that there is no concern for long position holders.
Some parts of this rally emerged after the expectations of another incentive that would cause the US dollar to depreciate. Investors who think that the US dollar will lose more value prefer to invest in Bitcoin, which they see as a store of value.
The rise in this week is based on the announcement that the payments company Square, owned by Twitter CEO Jack Dorsey, will invest $ 50 million in Bitcoin. The leading crypto money, which rose right after the announcement, showed an increase of 10% in a week.
Many analysts expect Bitcoin to reach an all-time high by the middle of 2021, but there is still uncertainty in the markets due to the upcoming US elections and the impact of the coronavirus epidemic. For this reason, things can turn completely reverse in Bitcoin, which has highly variable price movements. Investors should be especially careful in this process.
Bitcoin (BTC) is trading at $ 11,661 as of writing.