itcoin has surged massively, crossing the $64,000 threshold again on October 14, 2024. This refill requires questions about the market dynamics and whether the bulls are back.
At precisely the time of change, per data by CoinGecko, fluctuations were around $63,802 after crossing the $64,000 mark, which characterizes the nature of the volatile cryptocurrency market.
Liquidation of Short Positions
Per data from CoinGlass, the surge has translated to the liquidation of close to $67 million worth of short positions in just a four-hour window. This liquidation spike usually signals a surge in purchases and signals that traders are bullish.
Although some analysts are optimistic, they feel the bulls are not fully in control. Specifically, trader DonAlt had said that the bulls would need to forcibly take back the level of $65,000 to claim market dominance.
Despite the recent surge, Bitcoin is still about 13% off its all-time high of around $73,000, reached in March 2024. The current performance is important because, for a long time, Bitcoin has been subjected to range-bound trading in active market conditions.
If Bitcoin fails to break resistance, it might remain flat. Market sentiment is considerably divided, as some investors are showing wariness from the volatility linked to crypto assets.
The Effects of Spot Bitcoin ETFs
Meanwhile, there has also been a focus on the rise of spot Bitcoin exchange-traded funds. Indeed, these ETFs have enjoyed remarkable capital inflow since their approval in January 2024.
Fidelity's Wise Origin Bitcoin ETF has secured major investments and is nearing a total size of 10 billion dollars, while BlackRock's IBIT fund leads in assets with 21.7 billion dollars. Growth in these ETFs therefore would explain the increased investor interest in the instrument and perhaps even partly explain Bitcoin's recent price movements.
