Bitcoin experienced a sudden surge, adding nearly $1,000 to its price in mere minutes
Bitcoin, the flagship cryptocurrency, has added nearly $1,000 to its value following a sharp increase in volatility within the cryptocurrency market.
The top coin reached an intraday high of $35,579 on the Bitstamp exchange at 7:12 p.m. UTC.
Bitcoin has emerged as the second-best performing cryptocurrency among the top 10 by market capitalization (behind only Solana).
Shorts getting liquidated
Data from CoinGlass, a cryptocurrency analytics platform, reveals a significant number of short positions have been liquidated in the past hour.
In total, $7.83 million worth of liquidations occurred, with a staggering 89.18% of those being short positions.
Binance, a leading cryptocurrency exchange, saw $3.41 million in liquidations, 86.34% of which were shorts. Similarly, OKX experienced $2.55 million in liquidations with an even higher percentage of shorts at 97.35%.
According to data provided by CoinGecko, Bitcoin is up 1.1% over the past 24 hours.
Tight Bitcoin supply
It’s challenging to pinpoint the specific reason behind the recent price spike. Yet, Glassnode, a blockchain data provider, has noted that the Bitcoin supply is “historically tight,” with a record number of coins being held by long-term investors and significant rates of accumulation occurring.
This could indicate a bullish sentiment among long-term holders, suggesting a confidence in the future value of Bitcoin despite short-term market fluctuations.