Crypto traders betting against Bitcoin (CRYPTO: BTC) were caught off guard as the price of the king cryptocurrency surged past $46,000, leading to a cascade of short position liquidations.
What Happened: According to data from Coinglass, in just 24 hours, a wave of liquidations saw 58,496 traders facing losses, totaling $215.37 million worth of liquidated positions. The largest single liquidation order, valued at a staggering $9.44 million, occurred on OKX, specifically within a Bitcoin to USDT (Tether) swap.
Bitcoin shorts bore the brunt of this squeeze, with $90 million worth of bearish (short) bets getting liquidated in a day, while Ethereum (CRYPTO: ETH) shorts saw a significant hit as well, tallying up to $25 million.
The Bitcoin Fear and Greed Index has reached a level of 76, indicating a state of ‘Extreme Greed’ among market participants.
JUST IN: The Crypto Fear & Greed Index has shifted from “Greed” to “Extreme Greed”. pic.twitter.com/WyW5wzpy8W
— CoinGecko (@coingecko) January 9, 2024
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: Blockchain analyst Jamie Coutts suggested an alternate rationale for the cryptocurrency’s appreciation. “According to CT (crypto Twitter) and the media, the only reason Bitcoin is up 150% in the past year is because of pre-ETF launch positioning. But do the fundamentals support current prices?”
Coutts cites network activity indices to demonstrate Bitcoin’s robust fundamental value. “This custom index, incorporating several network adoption metrics, is at an all-time high, yet BTC is still 40% below its peak,” Coutts said, postulating that despite Bitcoin’s price still trailing beneath its record levels, its current valuation doesn’t fully reflect the strength of its fundamentals.
According to CT and the media, the only reason #Bitcoin is up 150% in the past year is because of pre-ETF launch positioning. But do the fundamentals support current prices?To gauge the ‘fundamentals’, we can look at various components of Bitcoin network activity. This custom… pic.twitter.com/6hFuBHH5LK
— Jamie Coutts CMT (@Jamie1Coutts) January 8, 2024
Meanwhile, the Securities and Exchange Commission (SEC) has reiterated a cautionary stance against FOMO-driven crypto investment…
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