Bitcoin bears should be cautious as analyst Crypto Rover warns of a potential $3 billion short liquidation event. Rover points to the $71,600 price mark as crucial, stating that if Bitcoin reclaims it, a significant amount of short positions could face liquidation. This assessment is based on data gathered from CoinGlass, which shows a substantial accumulation of liquidity at higher price levels.
The crypto market has been experiencing turbulence, marked by sharp price movements and increased trading activity. Over the weekend, Bitcoin saw a sudden decline to as low as $62,000 before showing signs of recovery. However, there have been record-breaking liquidations, with over $1.2 billion in Bitcoin long positions liquidated in a single day. In the past 24 hours alone, 89,151 traders were liquidated, resulting in a total loss of $266.10 million.
In other developments, Hong Kong regulators have granted provisional approval for asset managers to launch spot Bitcoin and Ethereum exchange-traded funds (ETFs). Analyst Willy Woo believes that the introduction of Bitcoin ETFs could have a significant impact on market dynamics, with price targets ranging from $91,000 at the bear market bottom to $650,000 at the bull market top. Woo highlights the growing institutional interest in Bitcoin and expects asset managers to allocate a substantial portion of their funds to the cryptocurrency. He also suggests that these projections are conservative estimates, and Bitcoin’s market capitalization could surpass gold as more capital flows into the asset.