BTC Inches Closer to $30,000 with Short Liquidations of $145M and Futures Open Interest Collapse
Bitcoin (BTC) touched the $30,000 mark today, surging over 5% in a matter of hours. This comes as a significant relief to the cryptocurrency market, which had been witnessing a sharp decline in the value of BTC over the past few weeks.
The surge in BTC price has resulted in heavy liquidations to the short side, with over $145 million lost in the past 24 hours alone, according to data from Coinglass.
The sudden surge in BTC price has caught many investors by surprise, as the cryptocurrency had been struggling to maintain its value over the past few weeks. However, it appears that the market has taken a bullish turn, with many analysts predicting that the value of BTC will continue to rise in the coming days.
One factor that has contributed to the surge in BTC price is the negative perpetual funding rate. This morning, the funding rate for BTC went negative, which means that investors who are holding short positions on the cryptocurrency are actually paying traders who are holding long positions. This has resulted in a rush of buyers entering the market, further driving up the value of BTC.
Despite the positive trend in BTC price, there have been some concerning developments in the futures market. Open interest in BTC futures has risen by over 8% in the past 24 hours, but then quickly collapsed on the run-up to $30,000. This suggests that investors may be cautious about holding long positions on BTC futures, which could potentially limit the upside potential of the cryptocurrency.
Overall, the surge in BTC price is a positive development for the cryptocurrency market, which has been struggling to maintain its value in the face of increased regulation and scrutiny from governments around the world. However, investors should remain cautious, as the market can be volatile and unpredictable. It will be interesting to see how the value of BTC evolves in the coming days and weeks, and whether this positive trend will continue.
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