In the past 24 hours, over $1 billion in cryptocurrency short positions have been liquidated, primarily focused on Bitcoin, reflecting the strong rebound of the market.
Liquidity has surged primarily from Bitcoin and Ethereum futures, amid a continuous inflow of investment into cryptocurrency ETFs and expectations of a favorable economic environment.
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Over $1 billion in cryptocurrency short positions were liquidated, primarily from Bitcoin and Ethereum futures.
Demand for Bitcoin ETF reached a new peak with a capital inflow of over $15 billion, boosting price stability.
Altcoins also surged in line with the positive trend, benefiting from the expectation of ETF approval and a favorable economic environment.
Why were over $1 billion in cryptocurrency short positions liquidated in 24 hours?
Statistics from market analysts show that liquidations primarily occurred in Bitcoin futures with $590 million, followed by Ethereum futures with $241 million. Traders betting on a market decline were caught off guard by the strong price increase, resulting in about 237,000 accounts being liquidated.
"This massive liquidation reflects the difference between short-term forecasts and the sustainable upward momentum of the market."
Director of Cryptocurrency Market Analysis, Q2/2024 Outlook
Among them, the major exchange accounting for most liquidations is Bybit with $461 million, of which 93% are short positions, followed by Binance and HTX with $204 million and $193 million respectively.
Why is the demand for Bitcoin ETF continuing to surge?
According to reports from financial experts, the allure of Bitcoin ETF has increased as total inflows into spot ETF products have exceeded $15 billion. BlackRock's IBIT ETF is holding over 700,000 Bitcoin, with revenue growing rapidly, potentially rivaling other flagship products of the company.
"Stable inflows into Bitcoin ETF are helping to stabilize price volatility and support the market during the summer period."
BlackRock Investment Director, June 2024
The contribution from institutional investment demand is considered one of the key factors helping Bitcoin's price maintain strength despite global volatility.
What is the impact of interest rate cut expectations on the cryptocurrency market?
Under the projected monetary policy impact of reducing interest rates to 1%, many traders have restructured their portfolios, actively buying call options at bottom prices like $130,000, indicating confidence in the macro environment supporting risk assets like cryptocurrencies.
How do Altcoins trend before Bitcoin's breakout?
Ethereum has surpassed Bitcoin for the first time in 24-hour futures volume, indicating an expansion of interest towards Altcoins. Expectations for an Ethereum ETF are drawing the attention of major investors, while XRP exceeds $2.57, DOGE is above $0.19, and Solana rises by 5%.
This positive development reflects market optimism and the capital rotation from Bitcoin to Altcoins, expecting to benefit from the ETF capital flow and increasing legal transparency.
Frequently Asked Questions
1. Why were so many cryptocurrency short positions liquidated? Due to an unexpected bull market, bearish traders were forced to close positions to avoid net losses. 2. How does Bitcoin ETF affect Bitcoin's price? Bitcoin ETF attracts significant capital, helping to increase liquidity and stabilize prices in the mainstream market. 3. Which Altcoins are benefiting from the current trend? Ethereum, XRP, DOGE, and Solana are performing positively thanks to ETF expectations and capital inflows. 4. How does the interest rate cut policy affect the cryptocurrency market? A low-interest-rate environment reinforces the attractiveness of cryptocurrencies as risk investment assets.
Source: https://tintucbitcoin.com/bitcoin-lap-ath-thanh-ly-vuot-1-ty/
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