In a whirlwind of market activity, Bitcoin (BTC) has soared by a staggering 10% in the past 24 hours, surpassing the $57,000 mark. Ethereum (ETH) followed suit with a 4% rise, crossing the $3,200 threshold. However, amidst this bullish surge, Coinglass data reveals a tale of liquidation, where $285 million worth of positions were forcibly closed, leaving 74,800 investors in the lurch.
The bulk of the liquidations, totaling $211 million, were short orders, where investors betting on Bitcoin’s decline found themselves on the wrong side of the market. Automated actions by exchanges swiftly executed these liquidations as the price surged unexpectedly, leading to cascading losses for leveraged traders.
This surge in Bitcoin’s value not only marks an impressive intra-day increase but also underscores its allure as a high-growth investment vehicle. Traditional finance (tradfi) players, hungry for exposure to Bitcoin, have been driving this rally, with record inflows observed in Bitcoin spot ETFs.
Bitcoin’s Historic Rally: October 2021 Revisited Amid Surge
MicroStrategy, a leading institutional Bitcoin holder, seized the opportunity, announcing an increase in its BTC holdings to 193,000 BTC. Founder Michael Saylor’s tweet about the acquisition of 3,000 BTC this morning catalyzed a $620 million surge in the firm’s holdings, now valued at $10.9 billion.
Saylor highlighted the firm’s strategic accumulation, averaging $51,813 per BTC, a move that has paid handsome dividends amid BTC’s recent price surge. This bullish sentiment echoes memories of October 2021 when BTC breached $57,000, heralding a two-week rally that saw it peak at $69,000 in November.
Not to be overshadowed, Ethereum enjoyed a favorable day as well, reaching a peak of $3,273—an achievement not witnessed since April 2022. This milestone comes on the heels of Ethereum’s gradual recovery from its all-time high of $4,878 in November 2021.
As Bitcoin and Ethereum continue to capture headlines with their meteoric price movements, investors brace themselves for the volatility that characterizes the crypto markets, where fortunes are made and lost in the blink of an eye.