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The Bitcoin price is at a new all-time high above $44.2k, adding an impressive $5.5k, coin trackers on Feb 8 reveals.<\/strong><\/p>\n Accompanying the upswing is the mass unwinding of BTC short bets. Data from Coinalyze<\/em> shows that $500 million of shorts have been liquidated across different centralized exchanges.<\/strong><\/p>\n For beginners, a cryptocurrency exchange will liquidate the asset of a margin trader (that is, those leverage trading) for cash when certain trading conditions are not met.<\/p>\n It often happens when the trader bets against or for a digital asset’s price to move in one direction only for the market to move against them.<\/p>\n Today, the BTC prices erupted above resistance, gliding to a new all-time high, reacting to Elon Musk’s Tesla investing in Bitcoin.<\/p>\n Earlier on, BTC\/USD prices were oscillating within a $12k range with clear resistance at Jan 2021 highs of around $42k.<\/p>\n The $500 million of liquidations were spread across leading derivatives and margin supporting exchanges, mainly at FTX and BitMex.<\/p>\n These exchanges support a high level of leverage. Coupled with Bitcoin and cryptocurrencies’ volatile nature, it can be a risky combination for traders to place bets on positions using high leverage.<\/p>\n Therefore, judging from these liquidations– a few minutes following Tesla’s 10-k filing revelation of a $1.5 billion investment in BTC, it appears that most traders were betting against Bitcoin prices.<\/p>\n Over the last few weeks, Bitcoin remains as one of the top performers, only trailing Ethereum. The most valuable digital coin is being reviewed by leading multi-billion public companies. Most are now considering Bitcoin for strategic investment, citing its superior properties, including acting as a hedge against inflation.<\/p>\n Last week, Michael Saylor\u2014the CEO of MicroStrategy, quoted the founder of NYDIG–Ross Stevens, ‘ estimate of institutions channeling $25 billion to crypto and Bitcoin by the end of the year.<\/p>\n His comments came during the Bitcoin for Corporations virtual events, organized by MicroStrategy, attended by tech companies, including SpaceX, Pfizer, and others.<\/p>\n As BTCManager reports, Tesla expects to start accepting Bitcoin as a form of payment.<\/p>\nWhat is a BTC Liquidation?<\/strong><\/h2>\n
Bitcoin Margin Traders Bore the Brunt<\/strong><\/h2>\n
$25 Billion to Bitcoin by the End of 2021<\/strong><\/h2>\n