Bitcoin witnessed a strong buying trend in the last 24 hours after the digital asset crossed $47,000 for the first time since January 2022. As a result of the latest bullish market sentiment in the world’s most valuable digital currency, over $130 million worth of short Bitcoin trading positions has been liquidated within the last 24 hours.
Overall, crypto liquidations have reached $410 million in the past 24 hours, almost 80% of the liquidated crypto positions were selling positions. Apart from Bitcoin, large liquidations were observed across other digital assets like Ethereum, Solana, ZIL and Ethereum Classic.
“Bitcoin has now returned all the way back to $47k for the first time since January 4th. The 11-week high comes as inflation, war and COVID-19 fears have all eased significantly, giving BTC traders an average mid-term trading return of over 10%,” on-chain analytics platform Santiment noted.
Selling pressure has been mounting on Bitcoin since the start of 2022. In addition to retail selling, investment products related to Bitcoin have seen large outflows in the past few weeks. However, the latest jump across the crypto market has strengthened the sentiment around BTC and other digital currencies.
Exchange Outflows
Bitcoin exchange outflows are swelling. Last week, BTC exchange inflows came in at $7.3 billion, compared to the outflows of $7.7 billion. A similar trend was observed across the Ethereum network, crypto exchanges saw Ethereum inflows worth $5 billion, compared to the outflows of $6 billion.
“The massive number of shorts that were growing on exchanges is the primary culprit for this jump. Altcoins really saw a huge short ratio at 1 pm UTC, followed by BTC at 6 pm UTC, spiking all of crypto. The rate of discussion toward Bitcoin compared to other altcoins is at one-year low levels, as Cardano and other top assets have been getting more of the spotlight,” Santiment added.
