O Bitcoin (BTC) experienced an early rise and renewed price levels that had not been seen since the bull market of 2021.
At maximums, the greatest cryptocurrency of the planet reached US$56,600 according to Coin Market Cap, but some price aggregators recorded a top of US$57 thousand.
Broadly speaking, there were two main factors that drove BTC prices.
The first is the continued buying movement by institutional investors following the approval of spot bitcoin ETFs (spot).
Reducing the availability of units on the market and maintaining demand for the cryptocurrency, prices tend to appreciate.
Not just big managers like BlackRock pocketed some BTCs.
Yesterday (26), Microstrategy added three thousand units of bitcoin to its coffers, at an updated value of US$169.8 million, exceeding the amount of US$10 billion in cryptocurrencies in its cash.
As a result, the largest cryptocurrencies on the planet also record strong increases. Check out:
PositionName (Symbol)Price24h variation7d variationYTD Variation1Bitcoin (BTC)US$ 56.568,1410,52%8,07%33,79%2Ethereum (ETH)US$ 3.257,796,33%11,00%42,77%3Tether USD (USDT)US$ 1,000,07%0,08%0,08%4BNB (BNB)US$ 399,522,05%11,51%27,89%5Solana (SOL)US$ 111,229,54%1,29%9,57%6XRP (XRP)US$ 0,55844,62%-2,00%-9,19%7USDC (USDC)US$ 1,00-0,01%0,00%-0,01%8Cardano (ADA)US$ 0,6217,06%-1,93%4,52%9Avalanche (AVAX)US$ 39,567,75%1,23%2,63%10Dogecoin (DOGE)US$ 0,0948211,85%8,84%5,99%Fonte: Coin Market Cap
- DON’T BUY BITCOIN NOW: Exponential Coins experts recommend investing in other cryptocurrencies besides Bitcoin to have more chances of profit. See which ones to buy here.
Liquidation of short positions in bitcoin (BTC)
The second reason for the rise in BTC was the liquidation of positions in short (betting on the fall, in market jargon).
Thus, the surge triggered a mass liquidation of approximately US$189.27 million in recent times, according to CoinGlass.
What happened was a movement called short squeezewhen investors with positions short (sold) in BTC had to get rid of their positions and increase the number of purchases of the cryptocurrency — consequently, prices also rise in a “spiral” that feeds back on itself.
How far will the price of BTC go?
There are less than two months left until the halving of bitcoin, when the reward for bitcoin mining is halved.
Vinícius Bazan, a specialist in cryptocurrency market analysis, had already predicted that the price of bitcoin would reach levels between US$30,000 and US$40,000 by the end of 2023, a prediction that was confirmed when the lights went out last year. .
For him, the post-halving effect should be as good as the “ETF effect”. “We continue to believe that BTC can surpass all-time highs [US$ 68.600] and reach US$80 thousand”, he states.