There was a sharp rise in the price of Bitcoin tonight. The price reached almost 37,000 USD, and according to the number of liquidations, professional traders did not expect much. We are currently hovering around $36,600. Did macroeconomic data from China cause overnight growth?
Tonight, the world’s second largest economy released information about a year-on-year drop in consumer prices of 0.2%. Stagnation was assumed. This information could have triggered a sharp jump that took us over the $36,000 mark. The price of the largest cryptocurrency is currently reaching its 18-month high, and by all accounts, the growth is expected to continue. The main factors driving the current rally could be the potential approval of spot bitcoin ETFs in the United States, mass adoption or the upcoming halving.
Most traders were betting on a decline
And as is so often the case, the majority is often wrong. The liquidation map is primarily red. More than $150 million in positions were closed. Mainly, of course, in short positions ($122.37 million). Bitcoin leads by far with more than 70 million ($62.40 million in short positions). The largest single liquidation was a $7.95 million trade on the OKX exchange. Of course, the growth took most of the altcoins with it, so there was also a bloodbath of cryptocurrency derivatives.
According to the total market capitalization of cryptocurrencies, new capital continues to join the bandwagon. Almost $36 billion more has been added since yesterday. So everything points to a bull run and the market is starting to heat up. The internet is full of bullish articles and the prospect of a new all-time high (ATH) in the coming months. Be careful though, most are often wrong.