Bitcoin Price Hits $21K As Crypto Market Cap Approaches $1T
Bitcoin (BTC) returned to $21,000 for the first time since September after Wall Street opened on October 26 as buyers consolidated gains.
BTC bulls ‘eat’ asks for liquidity
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit local highs of $21,012 on Bitstamp.
At the time of writing, the pair continued to explore out-of-range territory for over six weeks.
Liquidations also continued to flow, with the last 24 hours delivering $750 million in liquidated positions on Bitcoin alone, according to data from Coinglass.
Cross-crypto liquidations totaled $1.43 billion, adding to what was already the highest number of 2022 so far.
The impetus did not come from US stocks on the day, which were treading water as Bitcoin played catch-up while reducing the overall risk-asset correlation.
The spotlight was instead on gold, which also saw a relief rally while the US dollar struggled. The US dollar index (DXY) hovered around its lowest levels since 20 September.
Tracking the order book on the largest global exchange, Binance, the analytics platform Material Indicators noted that liquidity went higher.
“Much of the buying liquidity was eaten up in the last 24 hours and some has been replenished, but there is no doubt that BTC bulls got some help as blocks of buying and buying liquidity adjusted up,” the wrote in part of a Twitter update.
$21,000 formed a key level for some analysts, among them Il Capo of Crypto, who previously predicted that the market would pull back at that point to retarget macro lows.
Fellow trader and analyst Rekt Capital also noted that Bitcoin was not yet out of the woods when it came to the decline from all-time highs.
“On a normal scale, BTC is breaking its year-long downtrend,” he tweeted along with comparative charts.
“However, on the log scale, the year-long downtrend is still far from being tested.”
Crypto market cap eyes key milestone
Beyond Bitcoin, there was also good news for crypto markets in general.
Related: Why is the crypto market up today?
The total crypto market cap, which had lost significant value over the course of the year, came within 5% of $1 trillion on the day.
“Total crypto market cap is up 2.5% today,” David Gokhstein, founder of Gokhstein Media, reactedand notes the euphoric feeling among market participants.
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