Bitcoin’s price recently hit a new all-time high of over $69,000 before dropping back to the mid-$65,000 range, leading to a surge in liquidations of leveraged positions on centralized exchanges. In the last 24 hours, over $197 million in Bitcoin positions were liquidated, primarily shorts totaling $108 million, according to CoinGlass.
Increased Crypto Liquidations: The wider crypto market also saw over $383 million in long position liquidations, totaling $678 million across major platforms. Liquidations, which occur when a trader’s position is forcibly closed due to insufficient funds to cover losses, highlight the risks of leveraged trading in volatile market conditions.
Despite this setback, industry experts remain optimistic about Bitcoin’s future. Chainlink Co-Founder Sergey Nazarov believes we may be entering a new bullish market cycle for Bitcoin, driven by capital inflows, innovation, and favorable macroeconomic and regulatory factors.
Decreasing Bitcoin Supply: Anchorage Digital CEO Nathan McCauley sees the recent all-time high as a significant moment for the crypto market, indicating increased involvement of traditional institutions. Anticipated events like the halving and ETF initiatives are expected to further decrease Bitcoin’s supply, strengthening its value proposition.
While Bitcoin retraces, major altcoins like SOL and Ether continue to rise, showcasing diversified interest in the crypto market beyond Bitcoin. The GM 30 Index, which reflects the performance of the top 30 cryptocurrencies, remains slightly up, demonstrating market resilience in the face of volatility.