Bitcoin: Unexpected 17% Surge Wipes Out Weekend Losses
On Tuesday, the price of Bitcoin (BTC) surged over 17% in the past 24 hours, exceeding $26,000 and reaching a 9-month high.
This price surge might come surprising to many traders who were anticipating a drop after the closure of Silicon Valley Bank and Signature Bank last week and the de-pegging of the USD Coin (USDC).
The leap occurred simultaneously with the most recent consumer price index report, indicating a 0.4% surge in February compared to January, consistent with the forecast of Dow Jones-polled economists. Core CPI, which eliminates unpredictable food and energy prices, exhibited a monthly upswing slightly exceeding the expectations of economists and a year-over-year shift that was on par with them.
On Monday, almost $180 million in Bitcoin shorts were liquidated, marking the most extensive amount since Jan. 20.
This led to a loss for the majority of Bitcoin futures traders, with losses mainly spread across several crypto exchanges.
On Monday, Bitcoin prices increased as US bank stocks fell steeply, causing fears of a similar bank run on regional outlets following last week’s Silicon Valley Bank collapse.
READ MORE: Bitcoin and Ethereum Showing Resilience Amid Banking Crisis – Cathie Wood From Ark Invest
Additionally, Binance announced it would convert $1 billion of its native Binance USD (BUSD) stablecoin to Bitcoin (BTC), Ethereum (ETH), BNB coin (BNB), and unspecified tokens.
This conversion may have also contributed to the price rise. Furthermore, data indicates that the price increase was led by investors purchasing Bitcoin directly, rather than investing in futures.
At the time of writing BTC is trading at $25,900 with a $54 billion 24-hour trading volume. Ethereum also surged around 10% and is currently priced at $1,750 with a $16 billion trading volume for the past 24 hours.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
