Bitcoin Breaks USD 55K Resistance, Returns to USD 1 Trillion Market Cap

Source: Adobe/Michael Nivelet

The price of bitcoin (BTC) reached as high as USD 55,500 in the market today, after it broke through an important resistance level in the chart at around USD 52,700 for the first time since May. The rise also brought the market capitalization of the number one cryptocurrency above the psychologically significant USD 1trn mark. 

At press time (14:37 UTC), BTC traded at 54,239, slightly down from its high above USD 55,000 reached earlier today. The price is up 9% over the past 24 hours, making it one of today’s best performers in the crypto market.

BTC price chart:

Source: Coingecko.com

The sharp price rise in the bitcoin price also led to a marked increase in bitcoin short positions being liquidated, data from Bybt.com showed. Over the past 4 hours, bitcoin shorts worth almost USD 151m were liquidated across all major exchanges, marking a sharp rise from the USD 4.3m in shorts that were liquidated in the prior 4 hours.

However, according to the CEO of CryptoQuant, Ki Young Ju, today’s price spike may have more to do with increased buying pressure than simply a cascade of liquidations. The CEO said that his data shows that someone bought USD 1.6bn worth of BTC via market orders in just five minutes earlier today. 

Also, today, Soros Fund Management, owned by billionaire investor George Soros, confirmed at a Bloomberg summit that the fund has invested in BTC.

“From our perspective again, we own some coins, not a lot, and the coins themselves are less interesting than the use use cases of DeFi and things like that,” Dawn Fitzpatrick, CEO and Chief Investment Officer, said.

The surge in the bitcoin price was also followed by a more modest rise for other major cryptoassets, with for instance ethereum (ETH) rising 3% over the past 24 hours, and cardano (ADA) trimming its losses from earlier today to end up down a mere 1% over the past 24 hours.

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