Crypto Market Sees Sudden Surge as Bitcoin Hits $70,000 and Ethereum Soars
The crypto market experienced a significant rally this week, with Bitcoin and Ethereum leading the charge. Bitcoin crossed $70,000 for the first time since June after a violent move up on Wednesday, while Ethereum saw a nearly 19% surge in just 24 hours.
According to CoinDesk data, over $4 billion in short positions were liquidated during this period, with Ethereum bearing the brunt of the squeeze. The asset's price rose sharply, outpacing Bitcoin's gains and making it the biggest gainer among top cryptocurrencies.
The rally was attributed to a combination of factors, including ETF demand, macro shifts, and the absence of heavy selling. However, Bitfinex analysts cautioned that 'squeeze-led rallies usually carry a question mark over whether they hold.'
Despite this warning, the market's attention is now focused on the longevity of this rally and how upcoming policies from Washington will impact the crypto space.