The two largest cryptocurrency assets by market capitalization, Bitcoin and Ether, enjoyed more increases on Saturday as the whole cryptocurrency industry continued its unexpected growth this year.
After increasing by almost 10% in the previous day, Bitcoin was holding steady at roughly $22,821 at the time of publication. After hitting some small barrier at about $21,500 on January 17, Bitcoin saw an incredible rise before reversing course and falling below $20,480 by midweek. Ether, on the other hand, was trading at $1,670 after registering gains of over 7% during the same time period.
Other cryptocurrencies did the same, with Solana recording the most growth among the top 10 categories of coins according on market capitalization. According to CoinMarketCap, SOL was trading at $25.16 at the time of publication, up more than 18% from the previous day. Cardano, DOGE, XRP, and BNB all gained around 9%, 7.63%, 5.28%, and 5.68%, respectively, in the same time frame.
The overnight spike in cryptocurrency prices forced 66,850 short traders to liquidate their positions. According to information from Coinglass, the total amount of liquidations during the previous 24 hours was $299.48 million at the time of publication. Notably, after falling short of the $1 trillion milestone in November of last year, the global crypto market valuation increased by nearly 6% overnight to reach $1.04T.
Despite concerns that a deluge of facts showing that things are still in flux would discourage cryptocurrency investors, the market has risen. This week, Genesis Trading became the latest casualty of the industry’s difficulties, applying for bankruptcy protection after incurring severe losses following the collapse of FTX and hedge fund Three Arrows capital. Genesis is a member of the Barry Silbert-led conglomerate Digital Currency Group, which has been struggling to maintain its composure recently in the wake of Gemini’s fraud claims.
Despite the terrible news, onchain measures indicate that investors are getting over negative stories and have begun preparing for the next bull wave.
Santiment, a crypto analytics company, said earlier today that whales’ massive investment in buying Bitcoin was the cause of its overnight increase.
Since August 18, 2022, Bitcoin has now reached $22.7k for the first time. The price increase is the result of a significant whale tier group of addresses owning 1,000 to 10,000 BTC amassing 64,638 ($1.46 billion) BTC over the course of the previous 15 days, the company tweeted.
As fundamentals continue to improve, particularly on a relative basis, Pierre Rochard, Vice President of Research at Riot Platforms, indicated that Bitcoin’s value was expected to keep rising toward $25,000.
“Bullish scenario: we’re exiting disillusionment, getting ready for next year’s halving, bitcoin doing its own thing regardless of macro,” he said. He states, “given the impossibility of predicting BTC’s volatile exchange rate, steady long-term accumulation is the way.”