Why Bitcoin price broke $50,000 today

The Bitcoin (BTC) price broke the $50,000 mark today. This is a level that has not been reached since the end of 2021. But what caused it to rise so quickly? This could be due to several factors such as: B. Liquidations, the Bitcoin ETFs and a decline Selling pressure from Bitcoin miners. Below we will go into the matter in more detail.

The reasons for today’s Bitcoin rise

A commonly cited reason for the sharp rise in Bitcoin price today is Bitcoin ETFs. The Exchange-traded funds Last week saw a huge inflow of funds, with an inflow of a whopping $1.1 billion. BlackRock’s IBIT fund, for example, over 99.98% from all other ETFs, having raised $3.19 billion since January 11th.

Until recently, there was some concern about ETFs, as it is Grayscale’s ETF (GBTC). didn’t work out so well. In the stock market fund, huge amounts of money disappeared to the competition. A large portion of inflows across all Bitcoin ETFs came from Grayscale’s fund. However, this outflow appears to be coming to an end while the other ETFs’ inflows continue.

Liquidations ensure rapid growth

Crossing the $50,000 mark today could be due to the massive series of liquidations that have taken place. In the last 4 hours there have been no less than 106 million dollars of liquidated positions. Most of these were short positions, with a total value of $94 million. The remaining $12 million was long positions.

During a liquidation, a trader is forced to close his position. This is done to limit further losses. This may lead to an acceleration in the price increase. Partly because these traders are forced to buy the same assets they had previously sold to cover their short positions.

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The price appears to be struggling to maintain levels above $50,000. It forms an important psychological level that is difficult to break through. Currently, the Bitcoin price is just below this limit and breaks through it from time to time. It is still uncertain whether the price will actually exceed the $50,000 mark.

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