Since its launch as the first cryptocurrency, Bitcoin’s value has fluctuated dramatically. The recent increase in price that temporarily sent it beyond $30,000 is evidence of both its potential for rapid expansion and the difficulties it presents to investors.
After a few days of comparatively calm, CoinGecko revealed that Bitcoin recently surged to a two-week high of over $30,000, underscoring the market’s irrationality once more and leaving us to consider the consequences of this upswing and the huge liquidations that accompanied it.
The last time Bitcoin surpassed the $30K mark was on July 24, a few days before the US Federal Reserve issued another interest rate hike of 25 basis points. The most important cryptocurrency wasn’t the only one in the previous few hours to post a rally. Nearly 6% of Solana (SOL) is up, 3.7% of XRP is up, and 2% of ETH is up.
The unexpected increase in the price of Bitcoin has enthused bulls and alarmed bears in equal measure. Although such price changes were anticipated by the cryptocurrency community, many were caught off guard by the scale of the increase and the subsequent liquidations.
The overall value of liquidations during the previous 24 hours hit $80 million, according to CoinGlass. The sum included nearly $42 million in Bitcoin trades. The top 5 were SOL ($3.2 million), XRP ($2.9 million), BCH ($2.2 million), and ETH ($8.1 million).
Approximately $81 million worth of positions were liquidated, with short positions constituting a substantial 80% of the total share. This highlights a key factor in Bitcoin’s volatility: the ongoing conflict between bulls and bears, wherein sharp price swings can have a domino impact on the market.
