Arincen - The Bitcoin currency recorded an astonishing performance at the beginning of June, achieving a jump of 3.8% in the past 24 hours, as its value approached the level of $110,000 before temporarily stabilizing at $109,600 early Tuesday Asian time. This sharp rise is considered the strongest so far this month, following a wave of decline that brought the currency close to $100,000 last week.
Reasons for the rise: From liquidation of positions to risk appetite
The recent increase was not coincidental, but rather driven by several influential factors, most notably the intense activity in trading markets, the notable positive shifts in network data, in addition to the easing of geopolitical tensions, especially between Washington and Beijing.
According to 'Coinglass' data, the market witnessed the liquidation of positions worth a total exceeding $203 million, the vast majority (195 million dollars) of which were from short-selling positions, contributing to the acceleration of upward momentum and pushing the price higher rapidly.
The derivatives market hits record numbers
Regarding derivatives, trading volume rose by 113% to reach $110.63 billion, while open interest jumped by 7.3% to reach $76.6 billion, reflecting the entry of new liquidity and major investment institutions into the market.
Strong accumulation signals and notable whale activity
In another context, data indicates that Bitcoin reserves in centralized exchanges have dropped to only 1.01 million units, compared to 1.55 million in July 2024, indicating a trend among investors towards long-term holding. The activity of large wallets – known as 'whales' – has also seen a notable increase, especially in the segment that holds between 10 and 100 Bitcoins, alongside a significant increase in demand from American investors.
Will Bitcoin break the historical barrier?
Despite the positive atmosphere, some analysts warn of the possibility of temporary corrections amid the overlap with the performance of traditional financial markets. However, expectations are rising that Bitcoin will continue its advance, and it may record new peaks exceeding $150,000 by the end of this year if U.S. economic policies continue to pressure the dollar and traditional markets.