HomeBlockchain & CryptoBitcoin Hits $41,000, Reaching Highest Value in Over One and A Half...

Bitcoin Hits $41,000, Reaching Highest Value in Over One and A Half Year

Bitcoin has surpassed the $40,000 mark for the first time since April 2022, marking a nearly 20% increase over the month. This surge in Bitcoin’s price has had a ripple effect on the entire market, leading to a roughly 19% rise in the total market capitalization, reaching $1.6 trillion from $1.35 trillion in early November. Tokens with the highest market capitalization experienced a 5%–10% increase over seven days, driven by an optimistic market sentiment.

Data from CoinGlass showed that exchanges have liquidated cryptocurrency perpetual futures positions totaling $220 million within 24 hours, including $80 million worth of bitcoin shorts. Liquidation occurs when an exchange forcefully closes a trader’s leveraged position, typically due to a partial or total loss of the trader’s initial margin. This action is taken when a trader fails to meet the margin requirements for a leveraged position. Large liquidations are often associated with strong market volatility.

The recent increase in the price of Bitcoin was fueled by speculation regarding the SEC’s potential approval of a Bitcoin ETF. Despite the SEC’s delayed ETF applications by major asset management firms such as BlackRock, Fidelity, 21Shares, Ark Invest, Bitwise, VanEck, and others, analysts believe that the SEC is accelerating the approval process. The SEC has been actively involved in crucial discussions with Grayscale and seven other applicants, including covering technical aspects like in-kind versus cash redemption models and broader regulatory implications. This signals a growing interest and a potential shift in the regulatory stance toward cryptocurrency ETFs.

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