Bitcoin unexpectedly rose in price by over 3% in a day, reaching the mark of $102,500. At its peak, its value exceeded $104,000, the highest level since January 31. This rapid increase in the first cryptocurrency shocked the market and caused massive losses among traders who bet on a price decline.
This is reported by Finway
Reasons for Bitcoin’s Surge
The main reason for the rally was U.S. President Donald Trump’s announcement of a new large-scale trade agreement with the United Kingdom. This news prompted investors to invest more actively in cryptocurrencies, leading to a significant influx of money into exchange-traded funds (ETFs), which reached a record level of $40 billion.
Impact on the Cryptocurrency Market
As a result of Bitcoin’s rapid increase, the total market capitalization of cryptocurrencies (excluding Bitcoin itself) rose by 10% to $1.14 trillion, the highest level since March 6. Amid such a jump in Bitcoin, traders lost nearly $400 million on short positions, which were bets on the cryptocurrency’s price decline. This is the largest liquidation amount since November of last year. Additionally, $22 million in long positions—bets on price increases—were liquidated due to volatility.
Analysts believe the market has the potential for further growth.