Leading cryptocurrency Bitcoin (BTC) rallied above the $41,000 level and Ethereum (ETH), the second largest cryptocurrency, reclaimed the $3,000 level. Analysts explain the reasons behind the rise. This may also give an idea of why prices fell in the first place. cryptocoin.com We are giving the details as…
Has the momentum in the stock markets increased the price of Bitcoin?
It is known that Bitcoin has recently exhibited a tight correlation with indices such as Nasdaq and Dow Jones. According to Chinese crypto journalist Colin Wu, the Nasdaq has increased by 2 percent recently, which is likely to contribute to Bitcoin’s push above $41,400. On-chain data provider Santiment likewise mentioned exchanges behind the BTC price spike. The positive sentiment from crypto traders surged to the highest level since the end of October 2021 when BTC, which had been hovering around $35,000 for a while, started rising Friday evening.
Uptrend may be driven by spot markets
Wu also tweeted that while Bitcoin and Ethereum are rising, other cryptocurrencies are not gaining as much. Still, Wu says the likely driver of the price increase for Bitcoin and Ethereum is the spot market, not the crypto derivatives market. He shared data that over the past 24 hours, the volume of Bitcoin futures liquidations has only reached $100 million with $90 million of shorts liquidated, meaning the derivatives market has been relatively quiet.
At the time of writing, the amount of liquidations in the derivatives markets seems to have changed somewhat. The 24 hours resulted in 72,700 traders being liquidated from the market, which represents a total liquidation of $270.8 million across all cryptocurrencies. Notably, the largest amount of liquidations was with BTC with $106.36 million, while Ethereum came in second with a total liquidation of $69.98 million. Currently, Bitcoin is trading at $41,432, up 9.17 percent in the last 24 hours and 9.53 percent in the previous seven days.
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