Bitcoin hits record high of $116,000: What's fueling the rally
What's the story
Bitcoin has hit a new all-time high of $116,000 for the first time. The surge in value has led to an increase in open interest on the Deribit exchange, with traders focusing on call options with strike prices of $115,000 and $120,000. This is a strong indicator that traders are expecting further price increases in the near future.
Future expectations
Traders betting on Bitcoin's long-term growth potential
Longer-term options set to expire in late September and December are also witnessing a spike in open interest at strike prices of $140,000 and $150,000. This trend shows that traders are not just looking for short-term gains but are also betting on Bitcoin's long-term growth potential. The bullish sentiment is further backed by institutional demand for the cryptocurrency.
Market impact
Over $760 million in Bitcoin short position liquidations
As Bitcoin's price crossed the $116,000 mark, short position liquidations intensified. According to data from Coinglass, liquidations worth $543 million were recorded in the last hour and $762 million over a 12-hour period. This shows that traders who bet against Bitcoin are now being forced to close their positions at a loss due to its rising value.
Regulatory influence
Bitcoin rally linked to Trump's re-election
The latest Bitcoin surge is being seen as a win for crypto enthusiasts, who invested after Donald Trump's re-election in November. They believe that his second term will bring more favorable regulations for cryptocurrencies. A US Congressional committee has even designated the week of July 14 as "Crypto Week," further highlighting the growing acceptance and recognition of digital currencies in mainstream politics and finance.