- Bitcoin Surpasses $111,000 on Thursday, Entering Uncharted Territory and Unleashing Broad Market Optimism.
- Cryptocurrency Market Trades in Green on Thursday, with Major Altcoins Like ETH, ADA, and SOL Following BTC’s Lead.
- Data from CoinGlass Shows Over $500 Million in Leveraged Positions Were Liquidated in Crypto Markets in the Last 24 Hours.
Bitcoin (BTC) soared above $111,000 on Thursday, entering uncharted territory and fueling a broad rally in the cryptocurrency market. With BTC now in price discovery mode, major altcoins like Ethereum (ETH), Cardano (ADA), and Solana (SOL) followed suit, pushing the overall market into the green. According to CoinGlass data, the sharp move triggered over $500 million in leveraged position liquidations in the cryptocurrency markets in the last 24 hours, underscoring the intensity of the breakout.
Why is the Cryptocurrency Market Rising Today?
The cryptocurrency market is trading in green on Thursday, with the largest cryptocurrency by market capitalization surpassing $111,000 after breaking its all-time high on Wednesday.
The primary reason for the market rally is Bitcoin’s entry into uncharted territory and the unleashing of broad market optimism. The technical outlook for Bitcoin on the daily chart suggests a continuation of the rally, with a target at its key psychological resistance at $120,000, supported by recent developments in the bond market.
Major altcoins like ETH, ADA, and SOL followed BTC’s lead and traded in green, as shown in the CoinGecko chart below.
Data from CoinGlass’ liquidation heatmap shows that the rally in the cryptocurrency market triggered a wave of liquidations, with over $500 million in leveraged positions wiped out in the last 24 hours. Notably, 62.61% were short positions, underscoring the market’s overly bearish positioning, which may further fuel the rally through short squeezes. The largest single liquidation occurred on Bybit, where a BTCUSD position worth $6.36 million was liquidated.
What’s Next for Cryptocurrencies?
As explained in the chart below, traders should watch out for capital rotation. Given Bitcoin’s all-time high, the market is likely in Phase 1 (money flowing into BTC causing a price increase) or transitioning towards Phase 2. Ethereum may begin to outperform Bitcoin soon, and large-cap altcoins could start to see inflows.
The Altseason (Phase 4) typically arrives after these earlier phases, as the Altcoin Season Index from Blockchaincenter.net currently marks 16. The metric indicates that altcoins have more room to grow, and investors still prefer to invest their money in Bitcoin or hold it rather than transfer it to altcoins, suggesting that the market is likely in Phase 1.
Stay ahead of the curve in the fast-paced crypto world – explore the latest updates and trends at Cryptonewsfeeds.com.
