bitcoin (BTC) hit $30,000 today, gaining over 5% in a matter of hours. This has been a significant relief for the cryptocurrency market, which has witnessed a sharp drop in the value of BTC over the past few weeks.
The rise in BTC price has resulted in heavy liquidations on the short side, with losses of over $145 million in just the last 24 hours, according to data from Coinglass.
Cryptocurrency its unit has struggled to maintain its value for the past few weeks. Therefore, the sudden increase in BTC price surprised many investors. However, the market appears to be bullish. Many analysts predict that the value of BTC will continue to rise in the coming days.
One of the factors contributing to the increase in BTC price is the negative continuous funding rate. This morning, the funding rate for BTC turned negative. This means that traders holding short positions in the cryptocurrency are actually paying traders holding long positions. This has caused buyers to flood the market and further increase the value of BTC.
Despite the positive trend in BTC price, there have been some worrying developments in the futures market. Open interest in BTC futures has increased by over 8% in the past 24 hours. However, it plummeted afterward as it rose to $30,000. This indicates that investors may be cautious about holding long positions in BTC futures. It also shows that this could limit the upside potential of the coin.
Overall, the increase in BTC price is a positive development for the cryptocurrency market, which is struggling to maintain its value. However, the market is volatile and unpredictable. Therefore, investors should be cautious. It will be interesting to see how the value of BTC will evolve in the coming days and weeks and whether this positive trend will continue.