• Bitcoin hit $60,000 after more than two years below this level.
  • BTC liquidations have surpassed $277 million in the last 24 hours.
  • This massive rally in the pioneer cryptocurrency could be attributed to the spot ETF approval.

Bitcoin (BTC) price has tagged the $60,000 psychological level in the early New York trading session on Wednesday. This development puts BTC at a level last seen in November 2021, after a months-long rally that can be broadly attributed to the approval of the Bitcoin spot ETFs in the US.

Also read: Bitcoin price peaks at $54,910 as BlackRock spot BTC ETF, IBIT, trades above $1 billion on Thursday

Bitcoin reaches new yearly high

Bitcoin price has skyrocketed past the $60,000 mark for the first time since November 18, 2021. This move marks the end of an 832-day hiatus. The world’s leading cryptocurrency surged nearly 16% in the past three days, reaching a peak of $60,800 on major exchanges before slightly sliding lower.

Speaking with FXStreet, crypto analyst Hansolar attributes Bitcoin’s retest of $60,000 to a combination of “strong spot flows” and “potential squeeze in the options market.”

The analyst further added that “the bitcoin options market, which is mostly made up of sophisticated institutional players (aka smart money), were betting on lower volatility before the break past $57,500 only to be caught off-guard by the persistent spot from Coinbase and the Korean market.”


BTC/USDT 1-day chart

According to CoinGlass data, the Monday and Tuesday rallies in Bitcoin price have caused nearly $250 million positions to face liquidations.

BTC Liquidations

BTC Liquidations

Bitcoin’s Open Interest (OI), which is the total number of BTC positions open at a given point in time, has hit $26.72 billion after being on an uptrend since September 2023.

BTC Open Interest 

BTC Open Interest 

As Bitcoin price trades around $60,400, analysts are cautiously optimistic about the future of Bitcoin, with some predicting a potential for a further rise towards its all-time high of $69,138, which was also reached in November 2021. However, others warn about potential correction and urge investors to exercise caution.

Also read: BTC ETF AUM could surpass Gold, expert says, amid enthusiasm for new investment funds

(This story was corrected on February 28 at 13:37 GMT to say that BTC reached a peak of $60,800 on major exchanges before slightly sliding lower.)


Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


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