Bitcoin reached $71000 by the liquidation

Bitcoin’s valuation momentarily reached $71,000, driven in part by the liquidation of short positions. Despite this, analysts from Glassnode anticipate a rise in market volatility and increased selling pressure from long-term investors.


In the last day, over $20 million in Bitcoin short positions were liquidated, contributing to the cryptocurrency’s brief spike to the $71,000 level. Currently, Bitcoin is trading at approximately $70,700, having risen more than 3% in the last 24 hours, as reported by The Block.
The recent surge in Bitcoin’s price resulted in $27 million worth of Bitcoin positions being liquidated. During the same timeframe, the broader crypto market experienced over $87 million in liquidations, with shorts constituting the majority at about $50 million, according to Coinglass.

A report from QCP Capital on Tuesday mentioned that the global influx of conventional capital is expected to continue supporting Bitcoin’s price, which reached $71,000 during the New York trading session.

However, Glassnode’s market analysis indicates that long-term Bitcoin holders, with coins aged between three months and three years, are facing increasing sell-side pressure. The report suggests that if prices continue to rise, this group may be more inclined to sell, potentially increasing their unrealized gains.

Glassnode also observed that with Bitcoin’s price recovery above $68,000 in the last 24 hours, only a minuscule 0.03% of long-term holders are at a loss, pushing the majority of short-term holders into a state of unrealized profit. However, this price increase has similarly affected most short-term holders, placing them back into unrealized profit territory.
The report concludes that the current market conditions resemble the initial enthusiastic phase of a bull market, with expectations of heightened market volatility in the near term. This is due to a recalibration of the sell-side risk ratio for both long and short-term holders, indicating a readiness for market movement.

During the same period, the GM 30 Index, which tracks the top 30 cryptocurrencies, saw a 2.58% increase to 148.41.