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The cryptocurrency market continues to see notable surges, with Bitcoin leading the way. According to blockchain data analysis firm CoinGlass, Bitcoin has continued to climb above $51,000, while investors who predicted a price drop were proven wrong on February 14, resulting in significant liquidations in the futures market.
Increase in Liquidation of Short Positions
As the market value of the largest crypto asset continues to rise, those who bet on a Bitcoin price drop keep losing. In the last 24 hours, more than $79 million worth of Bitcoin short positions were wiped off the market.
According to data from analytics firm CoinGlass, looking at short positions across the entire cryptocurrency market, positions worth $147 million were liquidated in the same time frame. Short positions are futures contracts that allow investors to bet on the decline of an asset’s price. When a short is liquidated, it means the investor’s prediction was incorrect, and the position is closed.
Bitcoin has seen an uptick following capital inflows into major crypto investment products, including 10 Bitcoin exchange-traded funds (ETFs) over the past few weeks.
ETF Funds and Bitcoin
New Bitcoin ETF products received the green light from the US Securities and Exchange Commission on January 10. Since then, a significant amount of capital has flowed into funds that allow investors to invest in the largest crypto asset, aiding in the rise of Bitcoin’s price.
A report published by CoinShares on February 12 shows that last week, funds focused on crypto assets received an influx of $1.1 billion. Bitcoin was trading at $51,680, up more than 6% on the day. Over the past week, Bitcoin has increased by 20%. However, it is still trading 25% below its all-time high of $69,044 seen in November 2021.
Recently, both the purchases of Bitcoin in spot ETF funds and the optimistic sentiments of investors towards Bitcoin continue to make headlines, especially with the upcoming halving event in April. While notable predictions about the halving process are being shared, many analysts are discussing the possibility of a downturn following the event.
