Bitcoin Soars Past $72,000, Triggering Massive Short Squeeze in the Market

by Pooja Chauhan · 08/04/2024

Bitcoin Soars Past $72,000, Triggering Massive Short Squeeze in the Market

Market volatility heavily impacted those holding short positions as bitcoin’s price soared past $72,000 on Monday. Data from Coinglass reveals that bitcoin short positions faced over $47 million in liquidations within the last 24 hours.

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Across the broader crypto market, total liquidations exceeded $152 million during the same period, with short positions accounting for about $107 million of this figure.

Bitcoin, the leading digital currency in terms of market value, saw a 3.8% increase over the last 24 hours, trading at $72,073 as of 5:25 a.m. ET. Similarly, the GM 30 Index, which tracks the performance of the top 30 cryptocurrencies, rose by 2.85% to 152.67.

Analysts from QCP Capital point to several indicators that suggest bitcoin might continue its upward trajectory. A key driver of this optimistic outlook is the approaching bitcoin halving event slated for April 20, which will reduce the pace at which new bitcoins are created.

Additionally, the involvement of major traditional financial institutions, including Citadel, Goldman Sachs, UBS, and Citi as Authorized Participants in Blackrock’s spot bitcoin ETF, underscores the growing mainstream acceptance of bitcoin.

The Bitcoin Ordinals market is also showing signs of bullishness. Despite a general downturn in NFT trading volumes on platforms like Ethereum and Solana, Bitcoin Ordinals volumes have been on the rise, spearheaded by collections such as NodeMonkes and Pups.

Over the last week, the Bitcoin Ordinals segment has seen significant growth, with sales in the Uncategorized Bitcoin Ordinals batch increasing by 51%, and NodeMonkes by 65%.

The growing interest in Bitcoin Ordinals suggests an alternative strategy for investors to leverage bitcoin’s potential gains without resorting to futures or leveraged products. This uptick in Ordinals trading activity could indicate traders’ expectations for a bitcoin rally.

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