Bitcoin price rally to $42K driven by spot volumes, not BTC futures liquidations
The post Bitcoin price rally to $42K driven by spot volumes, not BTC futures liquidations appeared on BitcoinEthereumNews.com. In the past seven days, Bitcoin (BTC) experienced a whopping 14.5% surge, hitting a 20-month high at $41,130 by Dec. 4. Traders and analysts have been abuzz with speculation, especially in the wake of the $100 million liquidation of short (bearish) Bitcoin futures within just 24 hours. However, when we dive into BTC derivatives data, a different story unfolds—one that places the spotlight on spot market action. BTC liquidation map Enough shorts to run it up all the way to $45-46k pic.twitter.com/7O2zYD4j8Q — Nik Algo (@nik_algo) December 4, 2023 The impact of the recent liquidations in Bitcoin futures markets While the Chicago Mercantile Exchange (CME) trades USD-settled contracts for Bitcoin futures, where no physical Bitcoin changes hands, these futures markets undoubtedly play a crucial role in shaping spot prices. The sheer scale of Bitcoin futures, with an aggregate open interest of $20 billion, underscores the keen interest of professional investors. In the same seven-day period, a mere $200 million worth of BTC futures shorts were liquidated, representing only 1% of the total outstanding contracts. This figure pales in comparison to the substantial $190 billion in trading volume during the same timeframe. Bitcoin futures aggregate open interest and volume, USD. Source: Coinglass Even when focusing solely on the CME, which is known for potential trading volume inflation, its daily volume of $2.67 billion should have readily absorbed a $100 million 24-hour liquidation. This has led investors to ponder whether the recent Bitcoin rally might be attributed to the targeting of a few whales within the futures markets. $BTC Next Possible Plan A Quick Wick to 42k-42.5k To Hunt BSL Of Shorts then A Quick Flushout of the Long’s & We Might see $BTC Pullback down to 39k-38.5k Retracement to 39k-38.5k Will be good Buying Opportunity For the Last Leg upto 45k-47k…
The post Bitcoin price rally to $42K driven by spot volumes, not BTC futures liquidations appeared on BitcoinEthereumNews.com.
In the past seven days, Bitcoin (BTC) experienced a whopping 14.5% surge, hitting a 20-month high at $41,130 by Dec. 4. Traders and analysts have been abuzz with speculation, especially in the wake of the $100 million liquidation of short (bearish) Bitcoin futures within just 24 hours. However, when we dive into BTC derivatives data, a different story unfolds—one that places the spotlight on spot market action. BTC liquidation map Enough shorts to run it up all the way to $45-46k pic.twitter.com/7O2zYD4j8Q — Nik Algo (@nik_algo) December 4, 2023 The impact of the recent liquidations in Bitcoin futures markets While the Chicago Mercantile Exchange (CME) trades USD-settled contracts for Bitcoin futures, where no physical Bitcoin changes hands, these futures markets undoubtedly play a crucial role in shaping spot prices. The sheer scale of Bitcoin futures, with an aggregate open interest of $20 billion, underscores the keen interest of professional investors. In the same seven-day period, a mere $200 million worth of BTC futures shorts were liquidated, representing only 1% of the total outstanding contracts. This figure pales in comparison to the substantial $190 billion in trading volume during the same timeframe. Bitcoin futures aggregate open interest and volume, USD. Source: Coinglass Even when focusing solely on the CME, which is known for potential trading volume inflation, its daily volume of $2.67 billion should have readily absorbed a $100 million 24-hour liquidation. This has led investors to ponder whether the recent Bitcoin rally might be attributed to the targeting of a few whales within the futures markets. $BTC Next Possible Plan A Quick Wick to 42k-42.5k To Hunt BSL Of Shorts then A Quick Flushout of the Long’s & We Might see $BTC Pullback down to 39k-38.5k Retracement to 39k-38.5k Will be good Buying Opportunity For the Last Leg upto 45k-47k…
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