Bitcoin Reaches Three-Month High of $99,406 Amid Increased Liquidations
Bitcoin #BTC reached a three-month high of $99,406 today, breaking the $99,000 mark.
The global crypto market capitalization rose by 2.7% to $3.06 trillion, with daily trading volume increasing by 25% to $104.3 billion.
Short positions faced rapid liquidations, totaling $300 million in the past day, predominantly shorts valued at $215 million. Bitcoin's liquidations included $114.5 million—$96.2 million from shorts and $18.3 million from longs.
A Bitcoin address closed two short positions, incurring a loss of $1.6 million due to the price increase.
- The largest single liquidation order was worth $10.6 million for a short BTC position.
- Short liquidations historically lead to increased optimism among traders.
The Bullish Case for Bitcoin (BTC)
The surge followed the US Federal Reserve’s decision to keep interest rates steady at 4.25% to 4.50%. Bitcoin experienced high volatility before the FOMC meeting on May 7.
This momentum positively impacted financial markets, with the S&P 500 gaining 0.43% and the CBOE Volatility Index (VIX) dropping 7.71%.
A previously inactive whale purchased 100 BTC for $9.78 million after the price rise, having sold at $101,874 four months prior.
- Increasing whale accumulation is expected to support Bitcoin's price growth.
- US-based spot BTC exchange-traded funds reported a net inflow of $142 million.
- Analysts at Bitfinex project that Bitcoin could surpass its all-time high of $109,000 if the $95,000 support level holds.