The surge of Bitcoin (BTC) to $57,000 resulted in traders losing $380 million. Over the last 24 hours, liquidations in the crypto market exceeded $380 million, with most forced closures in BTC and ETH.
The sharp BTC price increase to a new annual high and the subsequent pullback led to a loss of $189 million for traders. Participants who opened positions in Ethereum (ETH) also faced significant losses, with the rate jumping to $3,300, costing them over $60 million.
Altcoins like SOL, WLD, and several others experienced significant liquidations. Over 90% of liquidations were distributed between OKX, Bybit, and Binance, with Binance executing the largest order, closing short ETHUSDT for $10.38 million.
What’s Happening to the Price of Bitcoin?
BTC reached a new yearly high, surpassing $57,000. The rapid rise began amid a record influx of funds into spot Bitcoin ETFs. The asset’s dynamics were also influenced by speculation around the approaching halving and expectations of the Federal Reserve transitioning to lowering the key interest rate.
According to CoinMarketCap, on February 27, the cost of BTC broke through $57,000, which is considered as the highest rate since December 2021. At the time of writing, BTC is trading at $56,920, marking a 9.9% increase in the past day.
Bitcoin’s capitalization now exceeds $1.107 trillion, with a trading volume over the past 24 hours surpassing $1.184 trillion. However, the rise to a new multi-year high cost traders $189 million, with more than 90% of liquidations distributed among OKX, Bybit, and Binance. Many experts believe Bitcoin can maintain its bullish momentum until the halving date.
Reasons Behind the Rise
On February 27, 2024, Bitcoin broke through $57,000, last seen in early December 2021. Analyst Ryan Rasmussen noted that the growth of Bitcoin was facilitated by the settlement deadline for transactions with BTC futures. Several fundamental reasons for the positive movement include:
- An increase of crypto inflow, which has exceeded $5.7 billion since the beginning of 2024, with most coming from Bitcoin.
- The halving is approaching. (In less than 60 days)
- Expectations for the American Federal Reserve to lower the key interest rate.
What’s Next for Bitcoin (BTC)?
The VR Soldier editors found that many expect BTC to grow to $60,000 before halving. Moreover, many members of the crypto community believe that BTC can maintain positive momentum until the halving, but after the event, investors may face a correction. Halving could trigger a sell-off based on assumptions that the cryptocurrency has reached a local maximum, similar to the approval of spot Bitcoin ETFs in the United States in January 2024.
