Bitcoin climbs to $79,000 in a powerful weekend surge, leading to $280 million in liquidations of short positions.
Bitcoin (BTC) surpassed $79,000 for the first time in history during a rare weekend pump that. Liquidated $280 million in negative crypto transactions.
BTC surged 4%, increasing its seven-day gains to more than 16%, following a week in which Republican. Donald Trump was elected president of the United States, The Federal Reserve dropped interest rates, by 25 basis points both of which were largely viewed as optimistic by traders.
Weekend pumps are often regarded, as positive in the cryptocurrency market, as trading volumes normally drop, over the weekend. When many institutional investors and experienced traders are less active. Lower liquidity can result in more erratic price swings, whereas even minor trades might generate big price shifts..
However, a substantial price gain on Saturday and Sunday might indicate that retail investors are driving market activity. This is a positive indicator since it suggests widespread interest and engagement from smaller investors. As opposed to mainly institutional investors.
According to a CoinDesk investigation, there is less profit-taking among bitcoin traders compared to prior euphoric moments. Indicating that the current rise still has opportunity to continue.
almost the weekend, pessimistic crypto bets lost almost $280 million, including $103 million. In bitcoin shorts and $70 million in ether short bets. Short bets are against rising prices.
DOGE and Solana’s SOL experienced over $25 million in liquidated trades. Indicating greater futures activity in tokens other than BTC and ETH.
A liquidation happens when an exchange terminates a trader’s leveraged position because the trader is unable to fulfill the margin requirements. Large-scale liquidations may imply market extremes, such as panic selling or purchasing. A cascade of liquidations may indicate a market turning point, with a price reversal on the horizon due to an overreaction in market sentiment.
Read more: Bitcoin and Inflation: Trump’s Economic Agenda Unpacked
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