Bitcoin has shown significant growth, surpassing the $70,000 mark for the first time in a long while, although its price later retreated to approximately $68,000. A similar positive trend has been observed among major altcoins, with Ethereum standing out — its price peaked above $2,100, corresponding to a daily gain of about 10%.
This is reported by Finway
Situation in the Altcoin Market and Trader Liquidations
In addition to Bitcoin, other leading crypto assets have also demonstrated dynamic growth. According to data from CoinMarketCap, most coins in the top 10 by market capitalization ended the day in the green, with Ethereum leading in growth rates. Against this backdrop, the volume of liquidations of futures positions in the cryptocurrency market exceeded $500 million. A total of over 133,000 traders were affected by liquidations, with the largest losses incurred by those who opened short positions — approximately $469 million. Liquidations of long positions amounted to over $102 million, with the main losses recorded for Bitcoin contracts ($231 million) and Ethereum ($202 million).
- Short position liquidations: $469 million
- Long position liquidations: over $102 million
- Losses for Bitcoin: $231 million, for Ethereum: $202 million
Growth Factors: Lawsuit and Market Expectations
Analysts link the sudden spike in Bitcoin’s price to a lawsuit against Jane Street. It is believed that the company may have been using its own algorithms for regular Bitcoin sales, which created pressure on the market. Following the news of the lawsuit, such assumptions were only strengthened, as the market reacted with a price increase for the first cryptocurrency.
“At the same time, there is no public evidence of systematic sales at fixed times; however, the timing coincidence between the legal events and the price movement may have fueled these assumptions, the journalists added.”
The lawsuit against Jane Street was filed by the liquidation manager of Terraform Labs, pointing to the possible use of non-public information during transactions related to the collapse of the Terra ecosystem.
Additionally, according to CoinDesk, the growth of the crypto market occurred against the backdrop of Nvidia’s quarterly results, which exceeded forecasts but did not become a driver for a prolonged positive trend for cryptocurrencies.
Cryptocurrency analyst Michaël van de Poppe notes the presence of a strong bullish divergence on Bitcoin’s daily chart compared to gold. According to him, although this divergence has not yet been definitively confirmed, the recent price dynamics may indicate the beginning of a new phase of asset rotation.
Previously, the end of miner capitulation was recorded, which may also indicate market stabilization and the potential for further growth of digital assets.