Bitcoin soars to $104,000 – traders lose $400 million betting on price decline
Bitcoin unexpectedly rose in price by more than 3% per day, reaching $102,500, and at its peak exceeded $104,000, which is the highest figure since January 31. This is reported by the specialized publication CoinDesk.
Such a rapid growth of the first cryptocurrency was a shock to the market and caused massive losses among traders who were betting on a price drop.
The main reason for the rally was US President Donald Trump's announcement of a new large-scale trade deal with the United Kingdom.
Cumulative inflows into spot exchange-traded funds (ETFs) have reached a record high of $40 billion.
The total market capitalization of cryptocurrencies (excluding Bitcoin itself) increased by 10% to $1.14 trillion, the highest since March 6.
Against the backdrop of this Bitcoin surge, almost $400 million was lost on short positions (traders' bets on a decline in the price of Bitcoin). This is the largest amount of liquidations since November last year.
Also, $22 million in longs – growth bets that could not withstand volatility – were liquidated.
Such a sharp excess of shorts over longs suggests that many traders were expecting a drop in the price, but got the opposite effect. Analysts believe that the market has the potential for further growth.
- The Swiss National Bank has rejected the idea of including Bitcoin in its reserves because it does not meet standards.
- At the same time, for the first time in the US , the inclusion of bitcoin in foreign exchange reserves was allowed at the state level.
