Bitcoin price is up today, and a market-wide rally in crypto prices suggests that BTC and Ether (ETH) could be aiming to wrap up the month of October in the black.
As of October 26, 2022, most major cryptocurrencies are posting single-digit gains. Bitcoin recorded a 5.15% price increase within the last 24 hours and a 5.48% gain within the last 7 days. While the current price is fluctuating, BTC is holding above the psychologically important $20,000 level. The following chart shows the BTC rally since October 24, 2022.
BTC price. Source: Cointelegraph
Stocks are beginning the day down as Bitcoin continues to remain over $20,000. Bitcoin’s momentum has continued for 3 days now and is seeing green candles today. The recent price spike pushed Bitcoin’s total market capitalization above the $1T mark and comes after months of narrow sideways trading range of $18,000 and $20,000.
Hand in hand with Bitcoin’s growth, most major cryptocurrencies including Ethereum (ETH), Solana (SOL), Cardano (ADA), Polygon (MATIC), Ripple (XRP) and Tron (TRX) registered more than 10% price increases within the last 48 hours. There are several reasons for the crypto rally.
The current rally in BTC and other major cryptocurrencies may indicate an increase in confidence in the market following several key developments; here we give details of the key drivers of the growth
$1 billion in short positions were liquidated
Since Bitcoin price crashed to $17,600 on June 18, the open interest of BTC futures contracts has been surging. The current price move triggered a wave of liquidations and one data point to keep an eye on is if we see a sharp reduction in aggregate open interest.
Data shows that Bitcoin short liquidations accounted for $550 million in liquidations in the past 24 hours. $704 million in cross-crypto shorts were liquidated on Oct. 25, with the Oct. 26 tally so far standing at $275 million.
Crypto liquidations chart. Source: Coinglass
Short liquidations directly help push the Bitcoin price higher by forcing automated buy pressure. The current rally is seeing open interest…