The Bitcoin price has soared past the $71,000 mark. In the past 24 hours alone, the price of Bitcoin surged by 6.5%, climbing from just below $65,500 to reach $71,491. This remarkable rally can be attributed to a combination of factors that have collectively contributed to the upward trajectory of the world’s leading cryptocurrency. Here’s a closer look at the four key reasons behind Bitcoin’s latest price surge.
#1 Futures Market Influence
The futures market has played a pivotal role in driving Bitcoin’s price upwards. According to data from Coinglass, the past 24 hours have seen the liquidation of 64,480 traders, with total crypto liquidations amounting to $184 million. Specifically, for Bitcoin, shorts worth $56.9 million and longs worth $16 million were liquidated.
Byzantine General, a crypto analyst, noted the significant increase in open interest, suggesting that leverage has been a major factor propelling Bitcoin’s price higher. He stated, “I can’t help but have the feeling that BTC is trading like someone knows something. A billion $ in open interest got added in the past couple hours. It’s mostly this leverage that pushed us higher I think.”
Furkan Yildirim, another analyst, cautioned about the sustainability of this rally, pointing out the over $1.7 billion in open interest built up since yesterday as a sign of overleveraged positions. “The whole truth is that over $1.7 billion in open interest has been built up since yesterday. We are increasingly seeing the use of overleveraged positions again,” he remarked, raising questions of the sustainability of the move.
#2 Bullish News For Bitcoin
The rally was further propelled by a series of optimistic news. Notably, the London Stock Exchange (LSE) announced its plan to introduce a market for Bitcoin (BTC) and Ether (ETH) exchange-traded notes (ETNs) by May 28. This decision opens the door to professional investors in Europe and signifies the growing institutional acceptance.
Moreover, the news of Peruvian Nilam Resources expressing intent to purchase 24,800 Bitcoins (worth $1.7 billion) “at a discounted rate relative to current market prices” through an acquisition strategy involving MindWave, a special purpose entity, has injected a dose of exhilaration and skepticism into the market, given Nilam’s microcap OTC stock status.
#3 Bitcoin ETFs And Coinbase Premium
Another critical factor influencing Bitcoin’s price rally was the dynamics…
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