Bitcoin price hits $30,000 for the first time in 10 months

We had already expected bitcoin (BTC) volatility to increase this week, but actually not until after Easter. However, the price started to rise sharply yesterday. Bitcoin initially broke through $28,600, the top end of the range where the price was stuck for weeks. Bitcoin then jumped several times and peaked around $30,400 last night. It is the first time since the beginning of June 2020 that bitcoin has risen above $30,000 and currently sits at a price of $30,095 on Binance and $27,615 on Bitvavo.

This means that the bitcoin price is up 6.5% today. Trading volume increased by 95% in the last 24 hours. The total market capitalization is $582 billion and the dominance is 47%. The Fear & Greed Index comes out at 68 (Greed).

Bitcoin Short Squeeze

The significant increase was accompanied by a massive liquidation of short positions, or a so-called short squeeze. A whopping $145 million was liquidated, 87% of which were short positions, according to data from Coinglass.

According to Julio Moreno, CryptoQuant’s chief research officer, the $30,000 break is accompanied by strong activity in the futures market and we see a significant increase in the open interests.

Still, Glassnode analyst Checkmate says the current rally is primarily driven by the spot market rather than the derivatives market.

More volatility expected tomorrow

Despite the sharp increase, more volatility is still expected tomorrow. That’s because tomorrow we have the release of the US consumer price index (CPI), which has seen markets move violently more than once in the past year. Then later in the day the release of the Federal Open Market Committee (FOMC) meeting minutes follows.

It doesn’t stop there: a long-awaited major update for the Ethereum (ETH) network will also follow tomorrow. Then ETH withdrawals will finally be possible and can therefore also cause a lot of volatility on the crypto market.

Read Also:  US Lawmakers Fail to Repeal Rule Prohibiting Banks from Holding Bitcoin

Bitcoin Ordinals continue to be popular

Meanwhile, Bitcoin NFTs remain very popular. According to Dune Analytics, more than a million inscriptions have been made with Ordinals in just two months. There is apparently a strong demand to use Bitcoin more than just as a payment network after all. It also increases transaction costs, easing the pressure on miners.

Gold back at $2,000

The price of gold had a less strong week after last month’s huge increase and hit its lowest price in a week yesterday. According to analyst Mya Saefong, this was mainly due to profit-taking and a rising dollar.

Meanwhile, the dollar is falling again and gold, like bitcoin, is rising. At the time of writing, the gold price is again exactly at the infamous $2,000 per troy ounce.

What makes investing in gold even more attractive at the moment is the fact that GoldRepublic gives new users a nice gift: 1 gram of gold worth about 56 euros! If you now create an account at GoldRepublic and buy 100 euros worth of gold, silver or platinum, you will receive this gram of gold on your account.

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