Bitcoin soared to US$103,900, fell overnight to US$90,400, and then recovered to US$97,898. Total liquidations in the past 24 hours reached USD 1.04 billion, of which USD 578.6 million was paid out in Bitcoin alone. Market volatility is high, as evidenced by the drop in the Fear and Greed Index from 84 to 72. Analysts believe that Bitcoin adoption could become even wider depending on market dynamics and regulatory developments.
After yesterday's surge to US$103,900 (AU$161,727), Bitcoin took a breather and fell to US$90,400 (AU$140,707) in overnight trading. The bulls then stepped in and bought the dip, pushing the price up to US$97,898 (A$152,287) at the time of writing.
BTC/USDT, Source: TradingView
According to Coinglass, the total liquidation of long and short positions in the past 24 hours amounted to US$1.04 billion (A$1.61 billion).
Related: Ethereum ETF surges on steady inflows, a sign of market improvement
Bitcoin liquidations alone amounted to US$578.6 million (AU$899.46 million), with long positions being the most affected. A total of USD 427.48 million (AU$664.54 million) long Bitcoin positions and USD 151.19 million (AU$235.03 million) short positions were liquidated.
Liquidation Heatmap, Source: Coinglass
There is definitely a lot of volatility in the market right now, so these numbers are accurate at the time of writing, but could change quickly. The Fear and Greed index also dropped significantly from 84 (extreme greed) to 72 (greed), indicating investors are becoming more cautious.
Mr. Kaitaka: “The fragmented virtual currency market requires an aggregation method tailored to virtual currencies.”
A report by Kaiko analysts highlights the increased volatility, which they attribute to Bitcoin's sudden rise above USD 100,000.
They also noted the wide discrepancy between exchange prices at the time, stating that “prices varied widely between exchanges, with Crypto.com being the first to reach $100,000.”
On Kraken, the BTC-USD limit remained at $100,000 for 10 minutes, while on Bitstamp and Coinbase the limit was exceeded. [sic] $100,400. These fluctuations can be attributed to limit orders, stabilization of volatility by market makers, and repeating market patterns.
opening height
Kaiko analysts said these fragmented markets require a separate method for traders to determine fair value, which is also important for “regulatory compliance and reporting.”
They believe that Europe's MiCA and DAC8 and CARF frameworks are a step in the right direction, but that these are just It's just the beginning.
Bitcoin rally could spark broader adoption: analyst
According to Bloomberg analysts, a tipping point that could see BTC rise further could soon be reached. Bloomberg Intelligence analyst Eric Balchunas said mainstream cryptocurrency adoption could be an upward spiral event.
There may come a point where advisors decide, instead of thinking, “I should own it to avoid getting fired,” they decide, “I don't want to upset my clients by buying a Bitcoin ETF.”
Eric Balchunas, Bloomberg
Simply put, Balciunas believes that advisors to wealthy clients may soon be forced to recommend Bitcoin in a balanced portfolio.
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Although highly speculative, there is a good chance that we will see much larger adoption than expected, and ultimately the price of BTC could rise significantly as a result.
