The Bitcoin price suddenly regained a major six-figure valuation with the $100,000 mark last seen on Tuesday, fresh from the massive liquidation that caused at least $8 billion in losses for traders.
The recent wave of market optimism that pushed the price of the leading cryptocurrency into the six-figure range was driven by the major shifts in the rhetoric of the U.S. monetary macro situation.
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With the unemployment rate falling according to the latest data, suggesting a slowdown in inflation, several Fed speakers hinted that the Fed’s rate and monetary easing may begin sooner than expected. In short, traders heard a hint of “money printing” and immediately showed their reaction in the market’s quotes.
In the middle of this, the bears, or sellers as they are more commonly known, felt the most pain. According to CoinGlass, the amount of liquidated short positions jumped to over $46 million in the last hour.
To put that in perspective, there was a total of $106 million in short liquidation over the last 24 hours, so almost half of that came from this spike in Bitcoin to $100,000.
Since then, the price of BTC has cooled off a bit, but such large price movements should not be surprising given the market conditions of the past few days. It would not be surprising to see the price move from $97,000 to $100,000 in the near future.
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One thing to keep an eye on, however, is how the price of BTC will hold the weekly close. Should Bitcoin enter next week with a six-figure close near its name, it will maintain the bullish bias for days to come and inject a new sense of optimism into the market.
