Bitcoin Smashes $80K, Wipes Out $260M in Shorts Amid Multi-Month Rally
Bitcoin's price has finally broken through the $80K barrier, a milestone it had been struggling to reach since mid-May. In a dramatic surge that culminated in a multi-month peak above $81,000, BTC gained over $16,000 from its starting point of under $65,000 last Wednesday.
The sudden price revival was accompanied by a significant increase in liquidated short positions, with the total value exceeding $260 million in just four hours. On a daily scale, the liquidations are up to $650 million, with Bitcoin responsible for half of that amount.
Analysts point to several factors contributing to this major resurgence, including the US Treasury Department's recent announcement and renewed ETF appetite. Some altcoins have also followed BTC on the way up today, with ETH nearing $2,500 once again and SOL surging by over 7.5% to trade above $100.
While Bitcoin's price is currently holding strong, some analysts warn of potential pitfalls ahead. As one analyst put it, 'Bitcoin's $80K Rally Is a Trap,' suggesting that the current rally may be short-lived and potentially followed by a significant drop.