Bitcoin Sets a New Record on Thursday, Causing a Massive Liquidation Wave for Short Sellers.
Bitcoin continued its impressive growth story by setting a new all-time high at $113,699.03 on Thursday, just a day after Nvidia became the first company to reach a $4,000 billion capital. This breakout created a massive selloff by short sellers, leading to a total liquidation of $302 million according to Coinglass data.
Signs of this strong price increase appeared on Wednesday when Bitcoin approached $112,000 on some exchanges. However, not all platforms recorded a new peak yesterday, but today's trading session witnessed a clear consensus as Bitcoin rose over 3% to surpass all previous records.
At the time of reporting, Bitcoin was trading at $113,316.60, representing a 3.68% increase from the previous session and a 3.37% increase over a week. The trading volume in the past 24 hours ranged from $109,059.38 to $113,699.03, showing strong volatility and reflecting the market's optimistic sentiment towards this leading digital asset.
Derivatives Market Buzzing with Record Liquidations
Trading volume surged 49.04% since Wednesday, reaching $65.31 billion, reflecting increased interest from institutional and retail investors. Bitcoin's market capital accordingly increased by 3.68%, now reaching $2.25 trillion. Notably, Bitcoin's dominance is approaching the 65% mark again, after increasing 0.07% to 64.80%, indicating strong capital concentration in the largest cryptocurrency.
The Derivatives market saw intense activity with the total Bitcoin Futures Contract value increasing 10.55% in the past 24 hours, reaching $83.23 billion. This suggests investors are increasing leverage to take advantage of the price surge, creating strong liquidation pressure for opposing positions.
Liquidations occurred at an unprecedented scale, reaching $312.64 million since yesterday. Short sellers suffered the heaviest losses with $302.56 million liquidated, while long positions were liquidated at a modest $10.09 million. This significant disparity shows many investors bet incorrectly about Bitcoin's short-term correction potential.
