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Bitcoin (BTC) has had a volatile 24 hours, hitting a low of $68,830 on the Binance crypto exchange before paring some losses.
Liquidation information at a glance
Although BTC is trading close to its all-time high (ATH) value of $73,737, yesterday’s rapid price drop casts doubt on whether the most important digital asset will be able to post a new ATH.
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According to CoinGlass facts from the crypto liquidations trackerMore than $296 million in active positions have been liquidated in the past 24 hours.
Nearly 77% consisted of long positions, indicating that traders were largely betting on BTC’s continued upward momentum. Binance saw the most liquidations with $124 million, followed by OKX with $74 million and Bybit with $65 million.
In digital assets, Bitcoin led with more than $97 million in liquidated positions, followed by Ethereum (ETH) with $47 million, and Solana with almost $17 million.
With yesterday’s slump, the total crypto market capitalization has shrunk by about 3.5%, currently valued at $2.48 trillion. It’s worth noting that while BTC is close to its ATH, the total cryptocurrency market cap is still significantly far from the $2.98 trillion ATH recorded in November 2021.
The gap between BTC’s performance and overall market capitalization suggests that altcoins have not kept pace with BTC’s recent gains, which has contributed to the disparity. This could also indicate cautious investor sentiment, with BTC being favored over altcoins in uncertain periods.
At the same time, it suggests that there is still a lot of room for altcoins to grow, which could tempt some more risk-seeking investors to accumulate altcoins in the hope of extraordinary gains against BTC.
That said, Bitcoin’s dominance – a metric that measures BTC’s share of the total crypto market capitalization – is steadily rising to 60%. Higher BTC dominance could spell disaster for altcoins that already lag BTC in price action.
Can Bitcoin Still Reach ATH?
The question among crypto enthusiasts is whether BTC will realize a new ATH during this rally. The answer is not simple.
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Factors supporting a potential new ATH include the increased probability that pro-crypto US presidential candidate Donald Trump will win the election, the consequences of the BTC halving, increased inflows into BTC exchange traded funds (ETF) and a low interest rate environment.
On the contrary, sentiment indicators such as the Fear and Greed Index suggest that the market is still in a ‘greed’ phase, suggesting that there could be more pain for the market before the next move higher.
Regardless of the outcome, the crypto market is likely to remain volatile in the coming days. However, long-term BTC holders seem unimpressed by this prospect as it involves profit taking stayed relatively muted as the digital asset crossed $71,000.
At the time of writing, BTC is trading at $71,524, up a modest 0.6% in the past 24 hours, with a reported market cap of $1.41 trillion.
Featured image from Unsplash, charts from CoinGecko, CoinGlass and Tradingview.com
Credit : www.newsbtc.com
