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Bitcoin is heading towards its highest levels again with waves of massive liquidations and whale activities

Autor: Financial Market
2 min

Bitcoin is trying to consolidate again above the $66,000 level today, with gains of more than 4%, after it recorded a sharp decline immediately after touching its highest historical level at $69,324.

So far, it seems that Bitcoin’s performance today, which is the day after touching historical highs, will be much better than the same day in 2021 when Bitcoin exceeded the 69,000 level for the first time and then entered a series of sharp bear trend.

Yesterday was a very turbulent day for both sellers and buyers alike, as more than $1.1 billion were liquidated through long and short positions in crypto derivatives, according to data provided by CoinGlass.

While more than $892 million (244 million for Bitcoin) of long positions were liquidated as a result of the violent decline that followed Bitcoin touching its new historical level for only moments and pulling back to $59,250 in the most extreme declines.

On the other hand, sellers suffered severe losses yesterday and about $291 million were liquidated from their positions (80 million of which were for Bitcoin).

Not only that, we witnessed unusual whale activities between today and yesterday as well, following the violent fluctuations of Bitcoin. Since yesterday until 7 a.m. GMT, we have witnessed movements estimated at more than $7 billion between wallets and crypto exchanges, according to data provided by Whale Alert.

Of course, with yesterday’s huge profit-taking wave, we expected to witness huge transfers of Bitcoin from anonymous wallets to crypto exchanges, which are believed to have been transferred in preparation for selling them, and this is what led to the equivalent of more than $2 billion of those transfers.

Whales also transferred the equivalent of more than $1 billion in Bitcoin from crypto exchange to anonymous wallets, indicating more long positions that may be long-term. Among them was one transfer worth $520 million from Coinbase to an anonymous wallet.

Bitcoin spot ETFs have of course been at the forefront of the scene, and in turn have recorded more noteworthy performance. The new US spot ETFs recorded more than $10 billion in trading volumes yesterday alone, with the BlackRock’s iShares Bitcoin Trust (IBIT) recording $3.7 billion, which in turn now has more than $11 billion in assets under management.

The rest of this week may be full of volatility as well. Of course, high volatility will be followed by high volatility, and a sharp decline may exacerbate this volatility more than a rise.

Friday also marks the exercise date for the equivalent of $1.9 billion worth of Bitcoin option, with a put/call ratio of 0.79, according to data provided by Deribit.