Key Points
- Bitcoin’s short liquidations have risen above $24 million as the cryptocurrency’s value rebounds.
- Despite short-term pressures, experts predict positive growth for Bitcoin in the coming months.
Bitcoin’s short liquidations have seen a significant increase, surpassing $24 million in the last day. This comes as the cryptocurrency’s price recovers from a multi-month low of less than $57,000 on Monday.
Bitcoin Market Volatility
In the past 24 hours, Bitcoin positions worth $33 million were liquidated amid market volatility. The broader cryptocurrency market witnessed over $112 million in liquidations during the same timeframe. The majority of these liquidations, approximately $70 million, were short positions.
Currently, Bitcoin is maintaining a value above the $59,000 mark, registering a 3% increase in the past 24 hours. The cryptocurrency was trading at $57,471 at 5:45 a.m. ET. The price of Ethereum also increased by 1.3% to $2,984 during the same period.
Positive Outlook for Bitcoin
Sergei Gorev, a risk manager at YouHodler, suggests that both technical and fundamental analysis indicators are showing positive signs for the crypto market as we move into May. Despite short-term downside pressure due to traders continuing to open short positions, Gorev expects Bitcoin to grow, forecasting the first significant medium-term target price for the asset to be above $80,000.
However, he also noted that a further price correction over the next week is still likely. He did not rule out the possibility of a deeper corrective movement, as the 61.8% Fibonacci golden ratio level at $52,000 per Bitcoin is still potentially untouched.
The increase in Bitcoin’s price comes after spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a net outflow of $34.4 million on Thursday, indicating a slowdown compared to the previous day’s record outflows.
The only ETF to experience a net outflow of funds on Thursday was Grayscale’s GBTC, totaling $55 million. Meanwhile, Ark Invest’s ARKB led daily net inflows, adding $13 million. Spot Bitcoin ETFs from Franklin Templeton, Valkyrie, Invesco, and Galaxy Digital recorded smaller amounts of net inflows, totaling a combined $6 million.
Bitcoin dominance edged down slightly over the past day to 50%, with Ethereum dominance seeing a slight uptick to 15.4%. The global cryptocurrency market cap increased by 3.7% in the past 24 hours and now stands at $2.34 trillion.
The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, increased by 2.39% to 125.85 in the same period.
