🚀$BTC Is Soaring Again: The Market Is Getting Excited About This Recovery.🤑
After a period of relative stability, Bitcoin awoke with a bang, crossing the $64,000 mark and triggering a wave of liquidations in its wake. This sudden movement hit traders who had bet on a market decline hard, causing short position liquidations exceeding $100 million. For many observers, this unexpected rise in Bitcoin marks a turning point and perhaps heralds a more sustained upward phase, often referred to as “Uptober.” But what triggered this storm of liquidations, and what are its effects?
A wave of massive liquidations: the bears crushed
Bitcoin’s rise to $64,000 caught many traders off guard, especially those who had adopted short positions.
By betting on a drop in Bitcoin, they probably hadn’t anticipated such an increase. The result? In one day, more than $101.4 million in short positions were liquidated in the crypto market, with Bitcoin alone accounting for $52.33 million of that total.
Ether, for its part, also participated in the carnage, with short position liquidations reaching $27.26 million.
These massive liquidations are explained by the very nature of short positions. When a trader bets on the decline of Bitcoin, they borrow the cryptocurrency to sell, intending to buy it back at a lower price.
But when Bitcoin gains in value, as in the last 24 hours, these traders must quickly buy back to limit their losses, thus triggering a series of automatic liquidations.
This phenomenon amplifies volatility and accentuates the rise in prices, creating a leverage effect on Bitcoin’s ascent.
Bitcoin’s return to this level not only shook the skeptics, it also reinforced its dominance in the market, bringing it above 58%.
This figure is close to levels last seen in April 2021, reflecting Bitcoin’s growing impact in the current crypto landscape.
The renewed interest in Bitcoin, supported by these forced liquidations, could well mark the beginning of a new chapter in what is traditionally called “Uptober.”
