Bitcoin Surges Past $80k as Crypto Markets Defy Weak Sentiment

Crypto markets have shrugged off a weak sentiment in Wall Street and a hardening in bond yields, with aggregate market capitalization increasing by nearly 5% over the past 24 hours. Bitcoin, the largest cryptocurrency, has touched a 24-hour high of $80,483, adding 1.5% to its value over the course of the week and reducing year-to-date losses to 9.3%. The surge in crypto markets comes despite the failure of the Clarity Act in the Senate vote, the Fed's rate hike, and hints of another rate hike before the end of the year.

The recent rate hike by Bank of Japan that lifted rates to a 31-year high had also weighed on the outlook for cryptocurrencies. However, a massive short squeeze has lifted prices higher, with crypto markets witnessing liquidations amounting to $499 million over the past 24 hours. The aggregate liquidation of long positions was significantly lower at $55 million compared to the liquidation of short positions at $445 million.

Bitcoin Spot ETF products in the U.S. witnessed net inflows of $160 million on Thursday, while Ethereum Spot ETF products saw net outflows declining to $39 million from $224 million on Wednesday. The leading cryptocurrency has continued its strong performance, positioning itself between 12th-ranked Saudi Aramco and 14th-ranked Tesla in the global ranking of all assets by market capitalization.