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Bitcoin's price remains above $62,000, with increased volatility leading to a surge in liquidations.
On the morning of February 29, the price of Bitcoin briefly surged to over $63,000 in early trading and then fell back to the $62,000 range. The price fluctuation led to a significant increase in the liquidation of Bitcoin leveraged positions. By market value, the largest digital asset rose nearly 6% in the past 24 hours, changing hands to $62,653 at 4:47 AM Eastern Time. The price surge in the past day resulted in a substantial closure of short positions on centralized exchanges. Data from CoinGlass shows that this volatility caused over $273 million worth of Bitcoin positions to be liquidated, with the majority ($169.5 million) being short positions. According to The Block's price page, major alternative coins such as SOL, the native coin of the Solana network, and Ethereum also saw daily gains of 16% and 4%, respectively. The data indicates that in the past 24 hours, the entire cryptocurrency market experienced liquidation of over $388 million in short positions, leading to a total liquidation amount of $751.33 million across various centralized exchanges. Liquidation occurs when traders are forced to close their positions due to insufficient funds. It happens when market fluctuations are unfavorable to traders' positions, depleting their initial margin or collateral. Analysts predict Bitfinex analysts have updated their Bitcoin price forecasts, anticipating that by the fourth quarter of 2024, the largest cryptocurrency could reach a high point of $100,000 to $120,000. In an email to The Block, Bitfinex analysts stated, "Our analysis predicts that by the fourth quarter of 2024, the conservative price target will reach $100,000 to $120,000, and the cycle peak will occur at some point in 2025 concerning the total cryptocurrency market capitalization." Analysts described the establishment of multiple Bitcoin spot trading exchanges in January as introducing "passive demand" for Bitcoin. The analysts added, "Demand comes from investors largely unrelated to price. They view Bitcoin as a store of value rather than a tradable volatile asset, and it has been this way for several years before the introduction of ETFs." General Motors' 30 Index representing the top 30 cryptocurrencies rose by 5.69% in the past 24 hours to 133.15. Disclaimer: The Block is an independent media providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency field. Cryptocurrency exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently, providing objective, impactful, and timely information about the cryptocurrency industry. The financial disclosures are available on their website. ©2023 The Block. All rights reserved. This article is for reference only and is not intended to be used as legal, tax, investment, financial, or other advice. |
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Post time 11-3-2024 13:37:45