2 - 3 minute read
Bitcoin continues to make headlines as it surges past the $22,000 mark, bringing the crypto market back to a market cap of over $1 trillion. The push beyond $22,000 has triggered another avalanche of liquidations across digital asset exchanges, with $250 million in crypto liquidations reported in the past 24 hours.
The pump began on Friday evening, with Bitcoin trading for roughly $21,380 at 19:45 UST before skyrocketing by $1000 to $22,370 by 21:00. The surge has continued since then, with the top asset trading at $22,615 at the time of writing. The price pump has also been reflected in other major cryptocurrencies, with Ether seeing a jump from $1590 to $1651 within the same time frame.
This rally brings Bitcoin closer to its 200-week moving average, a key indicator of long-term market trends. The last time either asset traded at these levels was prior to major events such as Ethereum’s merge and FTX’s collapse, both of which sparked massive crypto market downturns when they occurred.
Coinglass reports that the price pump has contributed to $250 million in crypto liquidations in the past 24 hours, including over 52,000 traders. The largest liquidation occurred over Bitmex on an XBTUSD trade for $3.15 million, with OKX leading the way in terms of liquidation count.
The rally in Bitcoin’s price can be attributed to optimistic inflation data recently published by the BLS, signaling to markets that the Fed may be prepared to stop hiking interest rates. However, former BitMex CEO Arthur Hayes has expressed skepticism, believing that a pivot is unlikely to happen so soon.
Overall, the crypto market continues to be unpredictable and volatile, with major price swings often triggered by a variety of factors. As always, investors should exercise caution and do their own research before making any investment decisions.