Bitcoin Surpasses $71K As Short Sellers And Whales Fuel Its Surge
In Brief
Bitcoin’s price surpassed $71,000, moving beyond the key resistance level of $70,000—a level not reached since June—leading gains across the broader crypto market.
Bitcoin’s price surpassed $71,000 in early trading today, moving beyond the key resistance level of $70,000—a level not reached since June—leading a wider cryptocurrency market ahead. As of the current writing, Bitcoin is trading around $71,158, showing a 4.93% increase in value over the last 24 hours, as noted by CoinMarketCap.
The recent price rise led to a liquidation of over $143 million in short positions, or bets against Bitcoin’s increase, within the past 12 hours. This may have accelerated the price surge as traders closed losing positions. Specifically, Bitcoin short positions faced $73 million in losses, followed by Ethereum (ETH) short positions, which lost $39 million, according to data from CoinGlass.
CryptoQuant, a company specializing in cryptocurrency market data analysis, observed that Bitcoin’s current price momentum appears driven by buying demand from whales on the Binance exchange, with substantial capital inflows from the US.
Furthermore, a sharp rise in cryptocurrency investments in October contributed to the upward momentum, with monthly inflows reaching $3.4 billion, bringing the year-to-date total to $27 billion—nearly triple the $10.5 billion record from 2021, as reported by CoinShares, a European digital asset manager. Additionally, spot Bitcoin exchange-traded funds (ETFs) saw net inflows of $997.6 million for the week, while short-Bitcoin positions experienced modest net outflows totaling $1.3 million.
Bitcoin Gains Momentum Amid Anticipated Fed Rate Cut And Election-Driven Market Sentiment
Several other factors are believed to be supporting Bitcoin’s potential growth, including the anticipated interest rate adjustment by the US Federal Reserve. A 25 basis-point cut is anticipated on November 7th, potentially reducing rates to a range of 4.5% to 4.75% in response to the need to balance economic growth.
Sentiment around Bitcoin may also be influenced by polling data related to the US election, with recent polls showing Vice President Kamala Harris and former President Donald Trump in a close race in critical states. On the trading platform Polymarket, Donald Trump is presently the favored candidate.
Notably, in its recent market analysis, Singapore-based cryptocurrency trading firm QCP Capital pointed out that as total BTC-PERP open interest across exchanges is now at $27 billion, approaching this year’s peak, a Bitcoin breakout above $70,000 could potentially lead to new all-time highs, especially as more leveraged positions accumulate.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
