Bitcoin Surges To $21k As Unknown Entity Purchases $4B In BTC Futures

Bitcoin experiences a massive price surge triggering a short squeeze.

Bitcoin, in the last few hours, has surged above the $20k price point for the first time since early November.

In a tweet today, CryptoQuant chief Ki Young Ju disclosed that within this period, an unknown entity accumulated about $4 billion in BTC futures market orders, triggering $87 million in short liquidations across all exchanges. The massive transaction has left many questioning the identity and motive of this buyer, with many speculating that it is a market maker.

For the past 3 hours, someone(s) just bought ~$4B worth of $BTC futures in market orders, and $87M short positions liquidated across all exchanges.https://t.co/JDrkUzPMqq pic.twitter.com/tOrmokB0z3

— Ki Young Ju (@ki_young_ju) January 14, 2023

Notably, Bitcoin gained over $1k in price value in a few hours, rising quickly from a little above $19,800 to $21,054, an over 6% price surge. At press time, the asset’s price has cooled to about $20,911.78, but it still represents a 10.92% increase in the last 24 hours.

Coinglass data indicates that there have been $215 million in short BTC liquidations in the past 24 hours.

Meanwhile, amidst all of these, Santiment Feed, in a tweet today, has highlighted that small whale addresses have rapidly increased in the run-up to the latest Bitcoin breakout. Per details shared in the attached chart, 416 new addresses holding 100 to 1000 BTC have appeared in the last 8 weeks.

? Amongst many of the foreshadowing metrics for this 2023 breakout was the rapidly growing amount of addresses holding 100 to 1,000 $BTC. Price pumps generally occur marketwide when whales accumulate #Bitcoin. The #1 asset in #crypto is +26% in two weeks. https://t.co/JMh83m3mIu pic.twitter.com/FiRTLIc3LB

— Santiment (@santimentfeed) January 14, 2023

As recently highlighted by Dogecoin co-creator Billy Markus, no one can point to a specific reason for the renewed interest in the crypto markets. The latest Bitcoin rally comes after extremely low volatility, with some analysts asserting that Bitcoin was undervalued.

Duo Nine, a prominent price action analyst, has asserted that a break above $22k will mark the end of the bear market. The analyst made this known in a tweet today in response to the latest price action.

? When #Bitcoin breaks $22k the bear market is OVER!

Sometimes you got to trust what the chart says.

How high will it go and who’s buying?

I should have said 21k below or maybe 22k. ? pic.twitter.com/OLjXFNyeJz

— Duo Nine | discord.gg/ycc (@DU09BTC) January 14, 2023

Source