Cryptocurrency Surge: Bitcoin Breaks $70,000, Liquidation Wave Sweeps the Market

Cryptocurrency Surge: Bitcoin Breaks $70,000, Liquidation Wave Sweeps the MarketThe cryptocurrency market has recently seen an enthusiastic surge, driven by a confluence of positive news, leading to soaring prices. According to Coinglass data, on October 29th at around 4:00 PM (Beijing time), Bitcoin breached $71,000 per coin, marking a 3

Cryptocurrency Surge: Bitcoin Breaks $70,000, Liquidation Wave Sweeps the Market

The cryptocurrency market has recently seen an enthusiastic surge, driven by a confluence of positive news, leading to soaring prices. According to Coinglass data, on October 29th at around 4:00 PM (Beijing time), Bitcoin breached $71,000 per coin, marking a 3.81% increase within 24 hours. This is the first time it has crossed the $70,000 threshold since June. Other cryptocurrencies also witnessed significant gains, with Dogecoin climbing over 14% and Ethereum exceeding 4%.

This surge has been accompanied by a wave of liquidations. In just one hour, the cryptocurrency market experienced over $1.68 million in liquidations. Over 24 hours, the total number of liquidations reached nearly 70,000, amounting to $229 million. The data for the morning of October 29th was even more staggering, with Bitcoin surging over 5%, Dogecoin exceeding 18%, and Ethereum nearing 5%. This resulted in over $73 million in liquidations within an hour and a total of over 73,000 liquidations over 24 hours, with a total liquidation amount reaching $242 million.

Analysts attribute this surge to a range of stimulating factors.

The upcoming US election has fueled market enthusiasm for Bitcoin. While Democratic presidential candidate Kamala Harris has expressed cautious views on cryptocurrency, she has pledged support for a regulatory framework for cryptocurrencies. This is seen as a more favorable stance compared to the Biden administration's relatively negative approach to crypto policy. Following Harris's commitment in mid-October, Bitcoin climbed to its highest level in two weeks.

Republican presidential candidate Donald Trump has been courting the cryptocurrency industry, positioning himself as a supporter of cryptocurrencies and even declaring his intention to turn the US into the global crypto capital. This has led to Bitcoin being perceived as a part of the "Trump trade". Tony Sycamore, market analyst at IGAustraliaPty, wrote in a report that Bitcoin received a boost from the overnight stock market rebound and continued to "price in a Trump victory."

Options traders are optimistic about Bitcoin's future trajectory. They believe that regardless of who wins the US election, Bitcoin is projected to reach $80,000 by the end of November, setting a new record high. Options expiring near the November 5th election date are expected to exhibit higher implied volatility, with traders leaning towards bullish options that give buyers the right to purchase Bitcoin at a higher price.

The holdings and buying intentions of institutions and tech giants are also significant drivers of the cryptocurrency surge. According to recent filings on the US Securities and Exchange Commission (SEC) website, tech giant Microsoft (MSFT.O), with a market capitalization exceeding $3 trillion, plans to vote on a proposal to "evaluate investing in Bitcoin" at its annual meeting in December. The rationale behind this proposal lies in Bitcoin's potential as an excellent tool to counter inflation.

Investment giant BlackRock (BLK.N) has set new records for its Bitcoin acquisition. Over the past two weeks, BlackRock has purchased an additional 34,085 Bitcoins, worth approximately $2.4 billion. As of now, the company holds over 400,000 Bitcoins, valued at over $28 billion (approximately 200 billion yuan). Financial reports reveal that as of the end of the third quarter of this year, BlackRock's total assets under management (AUM) amounted to $11.48 trillion, equivalent to approximately 820 billion yuan.

The Hong Kong Securities and Futures Commission (SFC) has announced the establishment of a Virtual Asset Trading Platform Advisory Group, expected to commence operations in early 2025. On October 28th, the Hong Kong Stock Exchange (HKEX) announced the launch of the HKEX Virtual Asset Index Series on November 15th. This series will provide a unified reference price for virtual assets, like Bitcoin and Ethereum, offering a transparent and reliable benchmark. It aims to address price discrepancies across global exchanges and support Hong Kong's development as a leading digital asset center in Asia.

CoinShares' report reveals that digital asset inflows reached $910 million last week, bringing the total inflows for this year to $27 billion, almost triple the record levels set in 2021.

The numerous positive developments in the virtual currency space have driven a positive surge in cryptocurrency concept stocks and related ETFs. At press time, OKEx (01499.HK) soared by 24.83%, OSL Group (00863.HK) gained 16.45%, and Xiong'an Technology (01647.HK) surged to 60% at the close. In the A-share market, there were notable fluctuations in computing power concept stocks, with several stocks like Zhongke Shuguang (603019.SH) and Century Huatong (002602.SZ) hitting the daily limit. Other companies like Langchao Information (000977.SZ) and Cambricon (688256.SH) also experienced significant upward movements.

The cryptocurrency market is currently in a highly volatile state, and investment requires caution. While numerous positive developments have propelled the cryptocurrency market upward, its price volatility remains substantial. Investors should be wary of risks and proceed with caution and rationality.