The cryptocurrency market, and in particular the price of digital assets, continues to be a wild goose chase. For instance, after massive price swings in the last 24 hours, total liquidations in the perpetual futures segment reached $1.24 billion, one of the largest this year.
Of course, the main focus was on Bitcoin (BTC) as the leading cryptocurrency. The price action in BTC, which took a roller coaster ride from as high as $106,500 to as low as $99,651, caused the most pain for traders, with $261 million worth of margin positions, according to CoinGlass.
The majority of this, of course, was on the long side — $161 million, with a further $100 million “donated” by bears who had failed in their investment decisions.
Fast forward to 12 hours later, however, and the price of the leading cryptocurrency was already above previous highs. More importantly, according to data from Binance, it was hitting an all-time high of $109,588.
Given the chain of events that took place over the course of last weekend, it was very doubtful that Bitcoin would renew its all-time high. But here we are.
What happens next remains a mystery. There are too many questions and little to no answers. First of all, does the fact that BTC has renewed its all-time high change the bearish narrative that has driven the cryptocurrency price the most this month?
The conventional wisdom is that when market liquidations reach $1 billion territory, it usually means a reset and a fresh start. But as everything takes on a new, more sophisticated form, the views and interpretations of such marks may also need to change.
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