As reported by CoinDesk, Bitcoin (BTC) experienced a dramatic spike early in the Asian trading session, briefly surpassing the $89,000 mark before retreating to approximately $87,000. This sharp fluctuation was part of an intense trading environment that has seen the cryptocurrency register over 32% in gains over the past week.
The striking volatility in Bitcoin's price triggered approximately $700 million in liquidations within futures tied to cryptocurrencies, affecting both bullish and bearish positions. Specifically, bearish traders incurred losses of $380 million, while bullish bets amounting to $290 million were wiped out. This wave of liquidations marks the highest cumulative losses since early April, when Bitcoin briefly eclipsed its previous peak, surpassing $73,000.
In this tumultuous landscape, Dogecoin (DOGE) emerged as a notable performer, witnessing an impressive increase of over 40%, nearing the 41-cent threshold. This rally coincided with heightened enthusiasm in the market, particularly in light of support from Dogecoin advocate Elon Musk, who is seen as being closely aligned with President-elect Donald Trump.
Futures linked to Bitcoin accounted for more than $200 million in short liquidations, with an additional $40 million recorded on bearish trades involving ether. The volatility extended to other major cryptocurrencies and mid-cap assets, including Solana’s SOL and Aptos (APT), each suffering losses exceeding $25 million. Such substantial loss figures suggest a burgeoning appetite for risk among crypto traders, a significant trend considering that these futures typically witness liquidations below the $5 million mark under normal market conditions.
As per Coinglass data, annualized funding rates have surged to over 30% for several altcoin-tracked futures. Bitcoin's price soared over 7% within a 24-hour period, driven by an unusually optimistic weekend — a sentiment buoyed by the recent electoral success of Republican candidate Donald Trump in the U.S. presidential elections.
Bank analysts project that a potential Republican dominance could propel the overall cryptocurrency market capitalization to $10 trillion by the end of 2026, up from its current valuation of around $3 trillion, with some predicting Bitcoin could hit a price target of $100,000 by year-end.
However, traders are cautioning against the risk of a price correction in the near term. Concerns are mounting about the potential for a leverage washout should Bitcoin cross the $90,000 threshold, alongside expectations of a more gradual climb to the coveted $100,000 mark from its present levels.
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