Bitcoin Price Surges Past $80,000, Wiping Out Short Positions
Bitcoin’s price experienced a dramatic surge, climbing by several thousand dollars to surpass $80,000 for the first time in over ten days, just days after facing significant headwinds from the U.S. Federal Reserve and the Senate.
The broader cryptocurrency market followed suit, with Ethereum (ETH) breaking above $2,550 and XRP rocketing to over $1.35. This sharp upward movement has led to a corresponding increase in liquidations.
Earlier in the week, the primary cryptocurrency had dipped to $75,000 on Tuesday evening following a setback in the U.S. Senate concerning the CLARITY Act. Despite defending that support level, further volatility emerged a day later when the Federal Reserve raised interest rates for the first time since July 2023.
However, Bitcoin rebounded almost immediately after the initial shock, moving past $76,000. While it continued to fluctuate in the subsequent days, the bulls appeared to maintain control. A key catalyst for today’s rally was the Bank of Japan’s decision to increase interest rates to a 31-year high, a move that was positively received by the cryptocurrency market, pushing BTC to just over $78,000.
After holding that level for several hours, Bitcoin launched an offensive minutes ago, skyrocketing past the $80,000 mark. This price point was last breached on September 7.
Most altcoins have also registered substantial gains of 2-3% in the past few hours. Ethereum has seemingly reclaimed the $2,550 level with a 2.3% hourly increase, while XRP is trading above $1.35 following a 3% jump. Solana (SOL) and Binance Coin (BNB) have seen more modest gains.
Data from CoinGlass indicates that over-leveraged positions totaling $192 million have been liquidated in the past hour, with short positions accounting for more than $183 million. Bitcoin saw the largest share of these liquidations at $119 million, followed by Ethereum at $36 million.
On a daily scale, the total liquidations reach $450 million, with $390 million stemming from short positions. In total, more than 100,000 traders have been wiped out within this timeframe.
