The cryptocurrency market has exploded across the board.
The cryptocurrency market has exploded across the board, with Bitcoin peaking at $122,370 per coin, a new high since July 18. Ethereum's price briefly rose to $4,350 per coin, the highest since December 2021.
Against the backdrop of significant volatility in cryptocurrency prices, the number of liquidations globally has surged. According to the latest data from CoinGlass, over the past 24 hours, there have been a total of 120,873 liquidations globally, with a total liquidation amount reaching $426 million (approximately 3.1 billion yuan).
Behind this surge is the growing interest of large investors in cryptocurrencies. According to Coingecko data, the so-called 'digital asset financial companies' have turned to holding a large amount of cryptocurrency after going public, accumulating a total of $113 billion worth of Bitcoin so far, while similar Ethereum investment tools have hoarded about $13 billion worth of tokens.
Rachael Lucas, a crypto analyst at BTC Markets, stated: 'Bitcoin's rise to historical highs is attributed to the continuous inflow of institutional funds into corporate finance, U.S. spot ETFs, and a shift in market sentiment following new tariffs on imported gold bars in the U.S. As gold faces supply bottlenecks and policy risks, Bitcoin, as a borderless and tariff-free store of value, is increasingly favored by investors.'
Industry insiders also expect that the positive macroeconomic outlook will continue to support risk assets, including cryptocurrencies, with Bitcoin expected to break historical highs this month.
Although Bitcoin is known as 'digital gold', its price trend has been highly correlated with risk assets in recent years. Ecoinometrics, focused on cryptocurrency intelligence, stated last Sunday that the correlation between Nasdaq and Bitcoin has increased, which can explain the recent price movement of the token.
The U.S. stock market is being driven by optimistic expectations of a significant increase in the possibility of interest rate cuts by the Federal Reserve. The market is currently focusing on the July Consumer Price Index report to be released at 8:30 AM Eastern Time on August 12, where economists expect the annualized inflation rate to rise by 0.1 percentage points to 2.8%. Any reading weaker than expected would enhance the possibility of the Federal Reserve cutting rates as early as September.
Sean McNulty, head of derivatives trading for FalconX in the Asia-Pacific region, analyzed that the current Bitcoin and Ethereum holding structure is significantly leaning towards call options expiring in September and December, which aligns with the global macro interest rate cut cycle and the accelerating acceptance of crypto assets by the traditional financial system.
Gold has seen its largest drop in three months.
Near-month gold futures contracts on the New York Mercantile Exchange plummeted nearly 2.5% on August 11 Eastern Time, falling below $3,400 per ounce in after-hours trading, marking the largest drop since May of this year.