Bitcoin Trades a Few Dollar Short of a New ATH, with $122 Million Shorts Liquidated
Bitcoin has witnessed a remarkable 4.2% increase within the past 24 hours alone, with over $122 million worth of short positions liquidated
On October 29th, 2024, Bitcoin reached a staggering $73,600, a mere $200 shy of surpassing its previous peak, sending ripples through the derivatives market. the apex coin is experiencing a dramatic upswing, with its price nearing an all-time high in the lead-up to the crucial US Presidential elections.
The surge has resulted in over $122 million worth of short positions being underwater, a testament to the significant market volatility.
Although the price has retraced slightly, trading currently at over $72,900, the coin has still witnessed a remarkable 4.2% increase within the past 24 hours alone.
Bitcoin Ride on US Presidential Election
The immense trading volume, exceeding $3 billion for spot Bitcoin ETFs in the US on this very day, further underscores the fervor surrounding the cryptocurrency.
Furthermore, this rally, coinciding with the US Presidential elections, scheduled for November 5th, has understandably amplified concerns about the potential for heightened market volatility. According to the source, the election‘s outcome carries significant weight within the market, influencing investor sentiment and impacting the future trajectory of Bitcoin.
Donald Trump, the current favorite on the Polymarket, is poised to face a formidable challenge, and the election’s outcome could significantly influence the crypto market.
However, while the current rally may be fueled by anticipation, we must consider whether this bullish momentum will sustain itself beyond the election or if it is a temporary surge driven by pre-election speculation.
Nonetheless, the coming weeks will be crucial in determining whether this bullish surge marks the beginning of a new trend or merely a fleeting moment in the cryptocurrency’s complex narrative.
Bitcoin’s Open Interest Surges to $16 Billion
As Bitcoin (BTC) surges towards its all-time high, the open interest in the perpetual futures market has surged back to $16 billion, according to Kaiko Data. This resurgence in market activity mirrors levels observed in August, just prior to a significant price correction.
The influx of capital indicates a renewed surge in market participation, reflecting growing investor confidence in the cryptocurrency’s future.
This notable increase in open interest coincides with Bitcoin’s successful reclamation of the highly anticipated $70,000 mark, a level it had struggled to achieve for the past four months.
The cryptocurrency is now making significant progress towards its previous all-time high, reaching an intraday peak of $71,400. This places Bitcoin just 3.48% away from its record of $73,750, setting the stage for a potential historic milestone.
Despite the increased activity in the perpetual futures market returning to August highs, funding rates remain moderate. This suggests a tempered demand, even as Bitcoin’s price rises to $71,000.
Funding rates reflect the costs associated with holding long or short positions in a perpetual futures contract, serving as a proxy for market sentiment. The relatively low funding rates indicate a balanced market, with neither bulls nor bears exhibiting overwhelming dominance.
