Bitcoin : Towards a New Historical Record ? The Market is Heating Up !
At 8:00 pm EST, Bitcoin (BTC) is soaring at $107,500, up by 1.5% against the dollar. With a market capitalization of $2.123 trillion and 36.27 billion traded in 24 hours, the leading cryptocurrency is in excellent shape.
Since the explosive weekly close on Sunday, BTC is only 2.36% away from its all-time high of $109,356. “Bitcoin is a rocket ready to take off,” enthuses renowned crypto investor Anthony Pompliano. So, are we on the verge of a legendary bull run?
On the 4-hour Bitstamp chart, Bitcoin shines, marking 13 consecutive days above $100,000. Four more days, and it will surpass the record for the most number of closes above this psychological threshold.
But the road is not without turbulence: $247.10 million of long and short positions were liquidated today, including $47 million on bearish bets against BTC.
The biggest loss? A trader on Gate.io, who saw $1.62 million evaporate. “Volatility is the price of innovation,” reminds Cathie Wood, CEO of ARK Invest.
One standout player is James Wynn, a trader on the decentralized platform Hyperliquid. With a massive deposit of $54,736,564 USDC and a 40x leveraged long position on BTC, his stake represents $828 million. A risky bet, but one that mirrors the prevailing euphoria. “When the market is this excited, you have to choose: follow or stay on the sidelines,” Wynn confides on X.
Why is BTC Skyrocketing ?
Bitcoin’s momentum is based on solid foundations. Adoption by institutions like MetaPlanet or MicroStrategy is boosting demand. Global inflation and economic uncertainties make BTC a refuge, often compared to gold. Moreover, the recent halving has reduced the supply of new Bitcoins, fueling speculation. “Bitcoin is a response to a financial system in crisis,” affirms MicroStrategy CEO Michael Saylor. But beware: volatility looms, and a correction could catch the unwary off guard.
Bitcoin is at a turning point. A breakthrough beyond $109,356 could trigger a buying frenzy, propelling the price to unprecedented heights. Yet, recent liquidations serve as a reminder that the market remains a battleground. One thing is certain: Bitcoin is far from reaching its peak in 2025.
As shown in the above chart, the rally in recent weeks is purely speculative, mainly driven by leverage effects and the futures market. Such rallies are often risky, as volatility and stop-loss hunting come into play.
In fact, BTC spot volumes are around $3.6 billion against $16 billion in November last year, during the post-election price surge under Donald Trump.
In the short term, BTC seems poised to display a new ATH in the coming days. However, bearish divergences in the daily, notably from the RSI, call for caution in June.
