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The Surge of Bitcoin Price to Reach Near All-Time Highs
Bitcoin reached a significant milestone on Monday morning as its price surged to $72,000, approaching its all-time high. This came after a turbulent start to the month, where it closed the first week of April below its 2021 peak of $69,044.
According to data from CoinGecko, Bitcoin experienced steady gains, just shy of 2%, over the weekend. However, as Europe began its trading day, prices soared by 4.45% within a span of just 12 hours.
Market Volatility and Derivative Activity
This surge in Bitcoin’s price coincides with a notable increase in BTC futures open interest, which is a metric used to gauge the total number of outstanding Bitcoin futures or options contracts in the market. As a result of this recent market volatility, approximately $58 million worth of short positions were liquidated in the past 24 hours, with the largest single liquidation amounting to $7.83 million.
Furthermore, the broader cryptocurrency market also saw significant liquidations, totaling over $121 million in short positions over the same period. In contrast, Ethereum experienced a 6.9% increase in value within the past day, despite lagging behind Bitcoin’s performance over the preceding month.
Factors Influencing Bitcoin’s Recent Price Movements
Analysis by industry experts suggests that Bitcoin’s 3% decline last week could be attributed to the reduction in outflows from crypto fund manager Grayscale, which decreased from $528 million to $80 million per day. As the US market prepares to open, Grayscale’s Bitcoin Trust has shown signs of appreciation during pre-market trading.
Anticipation is building for the upcoming Bitcoin halving event scheduled for April 20th, a date humorously noted as ‘4/20’ by some. Historically, halving events have been perceived positively by long-term investors, as Bitcoin’s price has typically surged by an average of 3,230% following each halving, as reported by CoinGecko.
Despite these historical trends, leading cryptocurrency exchange Coinbase has advised caution, highlighting that past performance does not guarantee future success or price performance. As the market continues to react to these developments, investors and traders are closely monitoring Bitcoin’s price movements and market dynamics in anticipation of potential opportunities.
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