On Monday, Bitcoin surged by 5%, crossing the $71,000 mark and hitting its highest level since March. This significant rise triggered extensive liquidations across the crypto market, impacting heavily on short positions. Data from CoinGlass shows that approximately $238 million in liquidations occurred within the last 24 hours, with $176 million coming from short positions. Bitcoin alone saw $35.5 million in short liquidations, while Ethereum traders experienced $11.95 million in losses.
Binance Dominates in Liquidation Impact
Liquidations occur when investors cannot meet margin requirements, leading exchanges to forcibly close positions. Binance accounted for more than half of these liquidations across all exchanges, underscoring its influence in the market. According to CryptoQuant analyst Mignolet, large investors are a major driving force behind this price action. Mignolet noted that “Bitcoin’s price movement is being influenced by increased whale activity on Binance,” with the Coinbase Premium Gap data suggesting a similar trend.
The Role of ETFs and Political Developments
Demand for U.S.-based spot Bitcoin ETFs also supports the recent price increase. According to a CoinShares report, these ETFs attracted nearly $1 billion in inflows over the past week, contributing to a year-to-date total of $27 billion for digital assets. CoinShares Research Head James Butterfill pointed to “political factors in the U.S.” as another driver of demand, with the upcoming U.S. presidential election influencing market sentiment.
Decentralized platforms like Kalshi and Polymarket also reflect political uncertainty, with Donald Trump currently seen as having a higher winning probability than Kamala Harris. As the election approaches, such factors are increasingly affecting investor behavior.
Bitcoin’s rise above $71,000 has sparked widespread market movement, with exchanges’ role in liquidations and the growing interest in ETFs in the spotlight. Market dynamics are shaped by a blend of technical analysis and macroeconomic developments, which Dey There will continue to monitor closely.
Bitcoin, crypto market, liquidations, Bitcoin ETFs, political factors
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