On the Bitstamp platform, the price of Bitcoin surged once again, hitting a new top of $41,522 in 2023. After a turbulent year, the cryptocurrency has experienced a major turning point with its current revival.
Analysts present a picture of a developing cryptocurrency ecosystem by attributing this increase to a number of significant causes, such as legislative changes and market dynamics.
The key reasons behind the surge
According to Bloomberg, Tony Sycamore, a market analyst at IG Australia Pty, identifies two key elements: the SEC’s possible approval of a Bitcoin ETF and the Federal Reserve’s projected rate reduction in 2024.
Co-founder of the Asia Crypto Alliance Su Yen Chia observes that investors now feel more confident due to recent enforcement measures against questionable practises in the cryptocurrency space.
Mike Novogratz stated that the industry will benefit from the Binance deal, as stated by U.Today.
Short sellers keep getting punished
According to CoinGlass statistics, the skyrocketing price of Bitcoin has had a dramatic effect on market positions, resulting in large liquidations.
$32.06 million worth of liquidations, mostly from short positions, occurred in the market in less than an hour.
Longer time periods showed that this pattern persisted, with liquidations lasting four hours, twelve hours, and twenty-four hours totaling $72.94 million, $143.24 million, and $184.73 million, respectively.
Since most of these liquidations involved short bets, the intensity of the Bitcoin bounce was unexpected. Many exchanges reported seeing this phenomena, with Bitmex, OKX, and Binance having the highest rates of brief liquidations.
