Bitcoin Reaches New Milestone of $71,000 After 38 Days
Bitcoin (BTC) has achieved a remarkable milestone by surpassing the $71,000 mark for the first time in 38 days. This surge in price comes as the entire crypto market rallies due to increasing optimism surrounding the approval of a spot Ethereum exchange-traded fund (ETF). ETF analysts from Bloomberg Intelligence have raised their odds of approval from 25% to 75%, citing growing political pressure on the SEC. These revised forecasts have also gained traction on prediction platforms such as Polymarket, where the approval odds for the ETF have risen to over 54%.
The positive sentiment surrounding Ethereum has driven its price up by nearly 20% in just 24 hours, leading Bitcoin to follow suit with a 7% price increase. However, this massive surge in prices has also resulted in significant market liquidations. According to Coinglass data, a total of $348.13 million worth of liquidations were recorded in the past 24 hours, affecting 79,714 traders. Among these, short trades saw $273.82 million in liquidations, while long trades experienced liquidations totaling $74.31 million.
Prominent Bitcoin analyst Willy Woo commented on the situation, stating, “1 month of Bitcoin short position build-up just got liquidated. One more layer to go in order to short-squeeze past all-time highs.” This suggests that the recent liquidations could further propel Bitcoin’s price towards new record levels.
Interestingly, even prior to this surge in price, investors were accumulating Bitcoin, indicating a positive sentiment in the market. Over the past week, a substantial amount of Bitcoin, totaling 30,516 BTC and valued at approximately $2.17 billion, was withdrawn from 20 tracked crypto exchanges. The largest outflows were observed on Coinbase Pro and Binance, further highlighting investor confidence in holding onto their assets for potential further price increases.
Overall, the recent price surge of Bitcoin and the optimistic outlook surrounding Ethereum ETFs reflect the ongoing developments in the cryptocurrency market. As regulatory frameworks continue to evolve and investor confidence grows, the market may witness more significant movements in the future.