Bitcoin reaches $44,000 and liquidates R$750 million in shorts

Bitcoin and other cryptocurrencies are on the rise in 2023. Source: Coin360.
Bitcoin and other cryptocurrencies are on the rise in 2023. Source: Coin360.

It continues to climb towards one of its best years, the Bitcoin reached the $44,000 this Tuesday afternoon (5). The result is that more than R$750 million worth of shorts (short positions) were liquidated on the cryptocurrency market.

As a highlight, one trader lost US$8.78 million (R$43 million). Then other bears appear with losses between $1.76 million and $3 million.

Another fact that draws attention in this moment of euphoria is the fear and greed index. Right now, the market is at its highest level of greed since its all-time high in 2021, indicating overconfidence among investors.

Bitcoin reaches $44,000, liquidating several short positions

When we reached $44,000 this afternoon, Bitcoin’s gains are 166% in 2023. Even with the clear upward trend, some traders continue to bet on the fall of the largest cryptocurrency on the market.

According to data from CoinGlass, more than US$155 million (R$764 million) of short positions were liquidated from the cryptocurrency market. From this number, $70.6 million (R$348 million) is in Bitcoin shortsand leave the rest to other cryptocurrencies that ride on this rise.

Traders who bet on Bitcoin's fall are being liquidated after the largest cryptocurrency on the market reached $44,000.
Traders who bet on Bitcoin’s fall are being liquidated after the largest cryptocurrency on the market reached $44,000.

One of the biggest losers is a approximately US$8.78 million (R$43 million), followed by another bear loss of $4 million. All liquidations were triggered when Bitcoin rose from $43,500 to $44,000.

Traders betting on the rise of Bitcoin are being liquidated for millions of dollars.
Traders betting on the rise of Bitcoin are being liquidated for millions of dollars.

Regardless, Bitcoin has already retreated around $600 and is trading at $43,400 at the time of writing. Therefore, high volatility is also a danger for bulls, who have liquidated US$76 million ($375 million) in the last 24 hours.

Bitcoin Fear and Greed Index reaches the same level as in 2021

Of spot Bitcoin ETF applications in the US With the possibility of approval as early as January of this year, the market is confident that this increase could be just the start of a super cycle. All this euphoria is reflected in the so-called fear and greed indexwhich shows the market sentiment.

According to data, this index reached level 75, close to “extreme greed.” This is the highest level since November 2021when Bitcoin was trading at $69,000.

Bitcoin Fear and Greed Index returns to the level of its 2021 ATH. Source: Alternative.me.
Bitcoin Fear and Greed Index returns to the level of its 2021 ATH. Source: Alternative.me.

Other factors contributing to this madness include the expectation that the Fed will kick in interest rate cutsjust like the Bitcoin halving. While analysts expect interest rates to change in March, the halving should take place at the end of April 2024.

Finally, some consider the fear and greed index as a tool to measure market excesses. In other words, extreme fear would be a good time to stop buying, while extreme greed would be a good time to sell. Be that as it may, this time the confidence is very justified due to the above-mentioned factors.

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Source: Live Coins