21 May

Bitcoin (BTC) has surpassed the $71,000 threshold, marking its first time crossing this milestone since April 12. Presently, it's trading at $71,200.

This notable achievement coincides with a larger market upswing fueled by optimism surrounding the potential approval of a spot Ethereum exchange-traded fund (ETF). The positive sentiment arises from recent statements made by Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence.

Crypto Market Rally Leads to Liquidations Worth Over $348 Million

ETF analysts have raised their prospects of a spot Ethereum ETF certification from 25% to 75%. Balchunas highlighted increased political pressure on the SEC as the reason for their amended projection. Furthermore, approval probabilities rose to more than 54% on prediction services such as Polymarket.

Despite these developments, Ethereum (ETH) enjoyed an almost 20% rise in just 24 hours. Bitcoin followed suit, with its price increasing by around 7%. This price increase resulted in substantial market liquidations.

Coinglass data shows that 79,714 trades were liquidated in the last 24 hours, for a total of $348.13 million. Short trades liquidated $273.82 million, while long trades liquidated $74.31 million.

Bitcoin analyst Willy Woo remarked that the liquidation of a month's worth of Bitcoin short positions signals a potential short-squeeze beyond the all-time highs.

Before these events unfolded, investors had been accumulating Bitcoin, signaling a bullish outlook. In the past week, investors withdrew 30,516 BTC, valued at about $2.17 billion at current market rates, from 20 crypto exchanges tracked by Coinglass.
The most substantial outflows occurred on Coinbase Pro, with 14,416.43 BTC withdrawn, followed by Binance, where investors pulled out 8,631.02 BTC.

When cryptocurrencies are withdrawn from centralized exchanges, it's generally interpreted as a positive sign. This suggests that investors are holding onto their assets, anticipating further price increases rather than planning immediate sales.

The surge in Bitcoin's price and the optimism surrounding Ethereum ETFs underscore the ongoing developments in the cryptocurrency market. As regulations evolve and investor confidence strengthens, significant movements may continue to unfold.

May 2024, Cryptoniteuae

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