Bitcoin’s price surged above $68,000, prompting liquidations of around $300 million in the past 24 hours, as the cryptocurrency market outperformed traditional financial markets this week.
Analysts attribute this rise to a decrease in selling pressure, with Bitcoin gaining more than 4% in the past day to pass the important $68,000 threshold.
ETC Group’s Crypto Asset Sentiment Index has returned to neutral after a period of slight downtrend in recent weeks. According to the report published today by ETC Group, the stabilization of net outflows and the easing of selling pressure, especially in Bitcoin, have fueled renewed buying activity on spot exchanges. “The return of risk appetite is also due to MicroStrategy (MSTR) reaching a new performance peak, which bodes well for the price of Bitcoin,” the report said.
Valentin Fournier, an analyst at BRN, emphasized that the recent volatility in Bitcoin’s price has led to a wave of short liquidations. “Over $1 billion worth of shorts are clustered just below $68,500. Further upward momentum in Bitcoin could lead to additional liquidations and potentially lead to a decisive breakout from its current range,” he explained.
*This is not investment advice.