Bitcoin’s (BTC-USD) recent rally has left critics confused regarding its continued resilience. Research from CryptoQuant points to a “huge accumulation” phase that has been driving Bitcoin’s latest rally. This has been bolstered by robust investor appetite.
Over the past weekend and into Monday, crypto bulls were thrilled with Bitcoin’s move higher by +5.59%, as it surged back to the $72,700 value area for the first time since March 14.
This bullish trend is supported by a record-high number of Bitcoin accumulation addresses, suggesting that long-term holders are now more hesitant to sell, resulting in a tightened supply that has driven prices upward.
Dollar Liquidity Increased, and Shorts Liquidated
Furthermore, the stablecoin issuance of around $3 billion in new USDT-USD in the past week has emerged as a key driver behind Bitcoin’s recent performance and recovery. The introduction of new USDT frequently serves as a liquidity injection, enabling increased trading and investment in Bitcoin. This connection is historically supported by the positive correlation between USDT issuance and Bitcoin’s price surge.
However, not everyone is thrilled with Bitcoin’s bullish moves. Those on the short side of the market have been particularly hurt. According to the on-chain analytics firm CoinGlass, $115.75 million in short liquidations occurred across cryptocurrency’s largest derivatives providers on Monday.
If we fast-forward to today, the liquidation scenario has shifted. It now totals $176 million in liquidations within the last 24 hours, with $122 million stemming from long liquidations and $54 million resulting from shorts.
SEC Defers BTC ETF Options: No One Surprised
The regulatory landscape continues to evolve in the backdrop of Bitcoin’s price dynamics. Yesterday, the SEC deferred its decision to allow options trading on spot Bitcoin ETFs from Bitwise and Grayscale on the New York Stock Exchange.
As the SEC’s next deadline approaches, the decision could have significant implications for the market, potentially unlocking new opportunities for traders and investors. Amid shifting market dynamics and heightened liquidity, strategic decision-making becomes paramount for navigating the evolving cryptocurrency landscape.
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