- The global crypto market value reached $2.25 trillion with a 7% jump supported by a significant increase in trading volume.
- A net liquidation of over $380 million occurred, including $274 million in short positions and $106 million in long positions.
- Traders were heavily impacted during a period where BTC, ETH, SOL, PEPE, ORDI, and THETA saw significant liquidations.
Following the rise in Bitcoin’s price, thousands of traders faced liquidation; is the next target for BTC the $60,000 level?
Bitcoin Funding Rates Increasing
Bitcoin briefly surpassed $57,000, leading to a broader rally in the crypto market. The global crypto market value reached $2.25 trillion with a 7% jump supported by a significant increase in trading volume. This resulted in over $380 million in crypto liquidations in the last 24 hours, pushing funding rates for both Bitcoin and altcoins to high levels.
According to Coinglass, more than 88,000 traders were liquidated in the last 24 hours. A net liquidation of over $380 million occurred, including $274 million in short positions and $106 million in long positions. The largest single liquidation order, valued at $10.38 million, occurred with ETHUSDT on the Binance crypto exchange.
Traders were heavily impacted during a period where BTC, ETH, SOL, PEPE, ORDI, and THETA saw the most significant liquidations. WLD, UNI, FIL, and XRP have also been affected since December 4, where the largest short liquidations were observed.
Following the rise in Bitcoin’s price, the crypto market rebounded with renewed bullish sentiment, pushing funding rates to high levels again. Funding rates represent fees taken for futures or perpetual contract trading on crypto exchanges, and high funding rates can erode profits when traders are long or bullish on a crypto asset.
The Bitcoin rally caused a stir in the options market, with more than 50 block orders having a notional value of over $5 million, as reported by options trading expert Greekslive. The largest of these represents active open positions, a rare occurrence in history.
With only about 50 days left until the Bitcoin halving, options traders are making calls for strike prices of $60,000 or even $70,000. Derivatives traders are bullish only on Bitcoin and Ethereum, and open positions for BTC futures on Binance and CME have reached record levels. The 24-hour trading volume exceeded $208 billion, with a more than 133% increase.
Will BTC Reach $60,000?
Spot Bitcoin ETFs started the week strong with a $520 million inflow and a volume of $3.84 billion. Given the high demand for BTC and low supply dynamics, it can be suggested that the BTC price might reach a new all-time high close to the Bitcoin halving date.
Matrixport predicts that the BTC price will see $60,000 before the Bitcoin halving. Bitcoin and Ethereum have performed well since the beginning of the year, showing an increase between 30% and 36%. In a recent post, Matrixport anticipates that the superior performance of crypto returns compared to ETFs of oil, S&P 500, gold, and bonds will lead to FOMO among traditional investors.
The BTC price reached $57,250 and is trading within 19.9% of the $68,600 high set 27 months ago. Currently, the price is at $56,517, representing a more than 10% increase in the last 24 hours.
