Key Points
- Bitcoin’s surge to $64K resulted in over $100M in crypto short liquidations.
- The rise in Bitcoin price was accompanied by an increase in trading volumes and market dominance.
Bitcoin recently surged past the $64,000 mark, causing significant turbulence in the crypto derivatives market. This unexpected price rise led to the liquidation of more than $100 million worth of short positions in the crypto market in just 24 hours.
Bitcoin’s Sudden Price Movement
Data from CoinGlass reveals that over $101.57 million in short positions were liquidated across the crypto market due to Bitcoin’s sudden price movement. In total, 54,422 traders faced liquidations amounting to more than $167.18 million. Bitcoin shorts alone accounted for $52.90 million of the day’s total liquidations, while Ether shorts amounted to $28.27 million.
Traders who were betting against Bitcoin prices were particularly affected as the rapid price increase left little room for margin calls and forced liquidations. Bitcoin’s market dominance also saw a significant increase, rising above 58%, nearing its highest level since April 2021, according to TradingView.
On October 14, Bitcoin’s price had increased by 1.90%, reaching $64,040. Trading volumes also saw a 52% spike in the last 24 hours. Bitcoin reached $64,173, its highest point in October and the highest price it has reached since the end of September.
Mt. Gox Delays $9B Asset Return
Bitcoin’s rise began on Monday, building on a strong comeback from the weekend. Mt. Gox, a now-defunct crypto exchange, announced that it would wait another year to return assets to creditors. This decision helped assuage fears of a potential large sell-off that could have further destabilized the market. Despite this relief, Bitcoin and other cryptocurrencies remained mostly steady.
Last week, the administrators of Mt. Gox revealed their plan to return the remaining assets by October 31, 2025. Almost $9 billion in stolen tokens, mainly Bitcoin from the 2014 hack, are part of this plan. However, they still have $2.8 billion worth of tokens left, which is causing unease among investors about how it might affect Bitcoin’s supply.
Earlier this year, the prospect of these assets being returned caused Bitcoin prices to drop significantly. The fear of a sudden increase in Bitcoin supply led to significant losses in the market. But with Mt. Gox delaying the return, Bitcoin has had a chance to recover and reach new heights.
Uptober Surge Continues Nine of Eleven Years
Many analysts are speculating about the onset of “Uptober”. Historically, October has been a positive month for Bitcoin, witnessing gains in nine of the past eleven years. This pattern has heightened expectations that Bitcoin could continue its upward momentum throughout the month.
Bitcoiner Kyle Chassé shared his optimistic outlook with his 219,000 followers on X (formerly Twitter) on October 14. He stated, “The tides are shifting,” and expressed confidence that the market is entering one of its most “exciting phases.” Chassé further emphasized the reality of the next big rally.
On-chain analyst James Check added his perspective, urging traders to “Pray for the bears”, highlighting the challenges that bearish traders might face in the current bullish environment. These sentiments reflect a broader market optimism tempered by caution among those positioned against the upward trend.
Meanwhile, Ethereum has also shown strength, confirming a breach of the $2,440 level. The price began the day with a strong rise, reinforcing expectations of a continuing bullish trend on both intraday and short-term bases. Technical analysis indicates that Ethereum has completed a double bottom pattern, with a confirmation line at $2,515.
