Bitcoin (BTC) price Investors who opened a “declining position” on it suffered great losses after the price increased, which did not show its direction for a while.
The volatility experienced by Wall Street Bitcoin (BTC) Realizing that this was a huge opportunity for investors, investors helped the price of the leading crypto asset rise above $40,000 for the first time this week.
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair abruptly surged above $40,000 on February 4, just 2 hours after Wall Street started making rapid gains.
In the past 24 hours, Bitcoin has managed to make a strong bounce from the $37,000 range to above $41, triggering a rally above $41,500, causing a great deal of pain to short traders.
According to Coinglass, Bitcoin liquidations In the last 24 hours, it exceeded $114 million and the total market liquidation exceeded $300 million. 73,610 traders have been liquidated in the last 24 hours. The single most significant liquidation order was executed on Okex – BTC-USDT-SWAP worth $3.18 million.
The data shows that despite the sharp rise in prices, the derivatives market remains relatively cold, with the spot market driving the rise, as the 24-hour BTC contract liquidation of around $114 million in shorts.
The ETH/USD pair, on the other hand, managed to surpass the psychological level of $3000, with Ethereum rising 12% from $2670 to $3032 in the last 24 hours.
The overall trend in the top ten cryptocurrencies by market cap was again bullish, with Polkadot up 15% in the last 24 hours, Solana 10%, XRP 9% and Terra 12%.
Why Is The Crypto Market Rising?
Analyzing the macroeconomic conditions, the conditions did not change much. Interest rates continue to be expected to rise and speculative money continues to be mostly transferred to more reliable assets.
However, the Wall Street session started with new gains for Amazon (AMZN), thus helping to fuel the cryptocurrency’s bullish action.
Also, the Nasdaq index, which is closely associated with cryptocurrencies, has risen more than 2% recently. Famous trader ‘Light’ stated that there was enough sales in 2 months and we saw a recovery, and said:
“I doubt there is any spot inventory left to sell at $40,000. What to sell has already been sold in a 2 month downtrend that was closed by a macro panic. Also, I doubt buyers in the $30,000 area are buying to sell here. We are in a situation similar in many ways to the $6,000 level in 2019.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.