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Bitcoin has hit $63000 after more than two years below this level, and liquidations have surpassed $277 million in the last 24 hours. This massive rally in the pioneer cryptocurrency could be attributed to the spot ETF approval. Bitcoin price has shattered past the $63000 threshold, with the bulls not showing any signs of stopping.
The upside potential remains alive, with BTC now eyeing $65,000. At the time of writing, bitcoin is trading at $60799, up 6.50%. Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined.
Bitcoin price has skyrocketed past the $60,000 mark for the first time since November 18, 2021. This move marks the end of an 832-day hiatus. The world’s leading cryptocurrency surged nearly 16% in the past three days, reaching a peak of $60,800 on major exchanges before slightly sliding lower. The next level to watch is $65,000. Analysts believe that the bitcoin options market, mostly made up of sophisticated institutional players (smart money), were betting on lower volatility before the break past $57,500 only to be caught off-guard by the persistent spot from Coinbase and the Korean market.
According to CoinGlass data, the Monday and Tuesday rallies in Bitcoin price have caused nearly $250 million positions to face liquidations. Bitcoin’s Open Interest (OI), which is the total number of BTC positions open at a given point in time, has hit $26.72 billion after being on an uptrend since September 2023.
As Bitcoin price trades around $60,400, analysts are cautiously optimistic about the future of Bitcoin, with some predicting a potential for a further rise towards its all-time high of $69,138, which was also reached in November 2021. However, others warn about potential correction and urge investors to exercise caution.
Investors are bidding other cryptocurrencies and related stocks higher too. Year to date, the second largest cryptocurrency, ether (ETH), has outperformed bitcoin by more than 3% while the total market value for all crypto assets is up roughly 37% to $2.24 trillion. One sign of surging enthusiasm for bitcoin is the trading activity in the bitcoin ETFs that launched in January, giving everyday investors widespread exposure to the digital asset.
So far this quarter, bitcoin trading volume has surpassed levels seen for the same period in every quarter of 2023. Derivatives traders are also piling into the bitcoin rally, with approximately $25 billion of open contracts in the bitcoin futures market, surpassing a mark last set in April 2021.
Bitcoin ETF approvals spark mass BTC adoption, experts say. Experts agree that ETFs open Bitcoin to a new class of professional investors by providing regulated investment vehicles. They express optimism that institutional interest in Bitcoin through ETFs is accelerating mainstream technology adoption, which has positive implications for financial inclusion and the broader crypto ecosystem.
A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
