On Monday, the price of Bitcoin drastically increased and reached above $74,000, which is the highest level observed in the past six weeks. This happened because a surge in short liquidations added momentum to the cryptocurrency market.
Based on market data analysis, this huge jump happened due to large traders closing short positions. Based on data from CoinGlass, crypto liquidations in total touched roughly $344 million in 24 hours, where almost 83% of these positions were from short trades.
Although Bitcoin was observed in high gains, various other digital assets also demonstrated strong gains. As noticed, Ethereum increased 8% in trade, reaching $2,266, whereas Solana and Polygon rose to almost 6%. Cardano reached the highest range, jumping to 10%, and meme-based cryptocurrency Dogecoin reached 7%.
The majority of digital assets gained huge increments, but a few digital assets did not participate in this rally, such as XRP, which declined to 5% during the session.
Investors are still extra concerned about the prices due to the current geopolitical conditions in the Middle East. This conflict has continued for the past three weeks, which is increasing the concerns of people about global energy supplies and their impact on inflation.
The price of oil has increased to $100 per barrel, and investors are still concerned due to potential supply disruptions in the Middle East. This has deeply affected the Strait of Hormuz, one of the well-known shipping routes that ships a significant portion of the world’s oil, the world’s crude oil exports.
If these tensions do not improve, then it might significantly increase the prices of global oil supplies. This highly impacted the global financial markets, resulting in great uncertainty for investors from various sectors, including cryptocurrencies and stocks. Investors are desperately waiting for the upcoming policy decision from the Federal Reserve.
Specialists predict that slight conflicts have a great impact on digital asset markets, and as a result, the current geopolitical situations might have a major influence on market sentiments.