Home Business News Bitcoin tries to keep the $42,000 level amid more positive momentum in the markets

Bitcoin tries to keep the $42,000 level amid more positive momentum in the markets

5th Dec 23 10:25 am

Bitcoin still maintains its record levels this year, with a decline of 0.55% today, with consolidation above the $41,600 level after touching the $42,400 level yesterday. Ethereum is also still consolidating at the $2230 level, after it touched the $2275 level yesterday as well.

The recent gains in cryptocurrencies come with continued optimism that the Securities and Exchange Commission (SEC) will soon approve the launch of a number of spot Bitcoin traded funds (ETFs) at the beginning of next year. Although there is no telling whether or not this is the case, the markets seem to be very clinging to these hopes.

While yesterday’s rise in Bitcoin put more pressure on sellers and prompted them significantly to abandon their bearish bet yesterday.

According to data provided by CoinGlass, more than $200 million of short positions were liquidated yesterday, which represents the highest levels in about a month. Meanwhile, about $140 million worth of long positions were liquidated in what appears to be profit-taking after yesterday’s record gains.

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Bitcoin had a share of $84 million in short positions that were liquidated, along with $20 million of liquidated long positions.

While we see that the ratio of liquidation of long to short positions for Bitcoin is noticeably lower than the same ratio for the market as a whole, which may reflect investors’ anticipation of more potential rises greater than the current rises.

There is also this momentum this week after more flows towards cryptocurrencies. According to data provided by CoinShares, last week was the tenth consecutive week of positive net inflows with more than $176 million in net inflows into cryptocurrency-related investment products.

This ongoing run also represents the largest inflow of investor funds in more than two years. Also, net flows may have reached $1.84 billion year-to-date, and if similar net flows are recorded this week, we will see the $2 billion-mark next week.

As usual, Bitcoin accounted for more than $132 million of these net flows. However, what was noteworthy was the return of the positive year-to-date net flows to Ethereum-related products, after recording $30 million in positive flows last week, thus bringing the net flows since the beginning of the year to $10 million.

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