The crypto market is becoming euphoric following the sudden increase in the price of Bitcoin. BTC reportedly touched US$40,000 on July 25 and is currently trading at US$38,632 on CoinMarketCap.
It’s been about six weeks since Bitcoin was seen above the US$39,000 price level, and this has got many bears squeezed.
Over $1 Billion in Bitcoin Shorts Liquidated in 10 Minutes
On-chain analyst Will Clemente tweeted that about US$111 million worth of Bitcoin short positions were liquidated in about 10 minutes. These are traders who got over-leveraged as BTC suddenly crossed US$38,000.
A further glance at ByBt’s liquidation data confirmed that about US$1.02 billion worth of Bitcoin shorts were liquidated in 12 hours leading up to press time, and US$1.11 billion within the previous 24 hours from nearly 100,000 crypto traders.
The largest single liquidation was US$29.3 million on the Huobi exchange, according to Bybt.
Are the Bulls Back in the Paddock?
Bitcoin hasn’t made this quick a move in some weeks, if not a month. Thus many people in the market have high hopes that the bulls are back in control.
Since hitting an all-time high above US$63,000 in April, Bitcoin dropped by more than 40 percent as the bears took over the market. Some factors or developments, such as the Chinese ban on miners, may have contributed to the bearish state of the market. However, a lot of short-term holders lost confidence in the market as their positions went underwater.
This led to increased panic-sells, especially among those short-term holders. Although the current price of Bitcoin looks bullish, some traders await a US$40,000 to $42,000 price as confirmation of the presence of bulls.
Bitcoin Reacts to Bullish News
Notionally, the price of BTC has been green for most of the time after Elon Musk and Jack Dorsey discussed Bitcoin at last week’s ‘B Word’ conference. At the time, Musk revealed that he personally owns Bitcoin, including SpaceX and Tesla. He also mentioned that Tesla might reconsider accepting payments in BTC for the second time.
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