As an analyst with over two decades of experience in financial markets, I’ve witnessed countless bull and bear runs, but the current Bitcoin surge is truly remarkable. The recent all-time high of $75,000 is a testament to the growing acceptance and adoption of cryptocurrencies.
Traders speculating a drop in Bitcoin prices due to the elections lost approximately $180 million, as the cryptocurrency surpassed its prior record value, momentarily reaching around $75,000.
According to Pav Hundal, lead analyst at crypto exchange Swftyx, the open market is surging, and those who have short positions are experiencing significant losses. This suggests that traders are confident that the cryptocurrency summer has returned, as there’s an overwhelming trend of buying activity on our order books at the moment.
Bitcoin short positions wiped
On November 6th, the price of Bitcoin (BTC) reached an all-time high of $75,008.50 on the platform Coinbase, surpassing its previous peak of $73,679 that was set on March 13th. This surge in value triggered a liquidation of approximately $179.12 million worth of Bitcoin short positions over the next 4 hours, as per data from CoinGlass.
Over the past day, a total of $483.16 million worth of cryptocurrency positions have been liquidated, where approximately $358.19 million were due to short positions.
On that particular day, Bitcoin short sellers experienced the most liquidation at approximately $251 million. This was closely followed by roughly $47 million worth of short positions in Dogecoin (DOGE).
According to Hundal, it wouldn’t shock him at all if Bitcoin’s value adjusted itself before reaching the U.S. trading session, regardless of who wins the presidential election.
He stated, “This demand is based on specific locations, which gives it significance. It’s not due to artificial inflation caused by derivative trading.
Spot buying is driving BTC’s price
He explained that spot buying “drives lasting demand and price growth for Bitcoin because it involves buying and holding the actual coins, unlike derivatives, which only speculate on price without affecting supply.”
Currently, some options traders are growing confident that the level of market volatility caused by the elections might be decreasing, as suggested by Nick Forster, the founder of the decentralized finance (DeFi) protocol Derive.
According to Forster’s statement in the November 6th market report, there’s an ongoing anticipation that short-term volatility will stay above average. This is due to the market factoring in daily price swings of approximately 4-5% as the election results get confirmed.
In other news, CK Zheng – one of the founders at ZX Squared Capital – shared his thoughts with CryptoMoon. He suggested that if Donald Trump’s victory is officially confirmed, Bitcoin could continue to increase because many in the market expect a second Trump administration to be particularly welcoming towards cryptocurrencies.
10x Research’s Head of Research, Markus Thielen, shared with CryptoMoon his viewpoint that the price of Bitcoin might reach an impressive $100,000 by the first quarter of 2025. In simpler terms, he thinks that the value of Bitcoin could be as high as six figures by early 2025.
Derive’s Forster noted that “there’s a 15% likelihood that Bitcoin could reach $100,000 or more by the end of this year, according to the options market.
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2024-11-06 09:34