Nearly $100 million in bitcoin short positions were liquidated in the past 24 hours on centralized crypto exchanges, according to Coinglass data. The bitcoin market experienced increased volatility over the past day, with the price fluctuating around the $44,000 mark. This price action caused the wipeout of approximately $122 million in bitcoin positions, with $96 million being shorts. According to The Block’s Data Dashboard, over $260 million has so far been liquidated in short liquidations in the initial five days of December.
Bitfinex analysts say while bitcoin remains volatile, they remain bullish for 2024. The analysts highlighted two factors that could be fueling the recent rally: the upcoming bitcoin halving in April 2024 and the potential approval of a spot bitcoin ETF. “While some market participants are eyeing $100,000 and some hoping for higher, we believe the bitcoin price will reach between $60,000 and $75,000 by the end of next year. This should be an easily attainable range considering the bottom of the trading range this year was formed around $16,000,” Bitfinex analysts said in a note shared with The Block.
December has seen a significant increase in the amount of short liquidations across the entire cryptocurrency market, with exchanges registering $614 million in short liquidations since the beginning of the month. Trading volume has also witnessed an uptick in the past month, with bitcoin futures trading volume currently standing at $213 billion, just six days into December.
Bitcoin has appreciated by almost 175% since the beginning of the year and was up as much as 5% on Wednesday, trading for $43,659 at 7:30 a.m. ET.
Historically, bitcoin has been known for its volatility, experiencing significant price fluctuations over the years. However, it has also seen substantial growth in value, attracting both retail and institutional investors to the market. The potential for a spot bitcoin ETF and the upcoming halving in April 2024 are factors that could contribute to further price appreciation in the coming years.
The recent liquidation of short positions and the overall increase in trading volume demonstrate the continued interest and activity in the cryptocurrency market. As the market evolves, it is likely to see further developments and opportunities for both investors and traders.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.
