Crypto News- Bitcoin’s weekend surge led to the liquidation of shorts worth $170 million

Crypto News- Bitcoin’s weekend rally resulted in the liquidation of short positions valued at $170 million

Crypto News- On Monday, Bitcoin experienced its most significant price surge in two months following an assassination attempt on former President Donald Trump.

The cryptocurrency market swiftly reacted to the news, with Bitcoin trading at $63,110, marking a 4.6% increase over the last 24 hours — its largest daily gain since May 20.

The attempt on Trump’s life occurred during a rally in Pennsylvania on Saturday, resulting in a gunshot wound to his right ear. Despite the attack, Trump survived, leading to a boost in his perceived chances for re-election. This development is widely believed to have spurred the rise in crypto prices, given Trump’s advocacy for cryptocurrencies to attract undecided voters. The market response, particularly in terms of liquidations, was notable.

Over the weekend, total short liquidations amounted to approximately $170 million by early Monday morning, while long liquidations totaled $49.73 million, according to Coinglass data.

Valentin Fournier, an analyst at BRN, noted that Bitcoin confirmed a breakout from its downward trend due to significant accumulation by whales, who purchased $4.3 billion worth. Additionally, the German government’s sale of seized BTC initially pushed prices lower.

Bitcoin Surge and Market Dynamics Following Trump Incident

However, he also cautioned about the risk, stating that if prices decline, the leverage could amplify the potential momentum for a reversal.

The recent surge follows Bitcoin reaching a record high of nearly $74,000 in March, driven by demand for dedicated US exchange-traded funds.

Following that peak, the cryptocurrency experienced a pullback attributed to reduced inflows and Germany’s sales of seized tokens. Just before the assassination attempt on former President Trump, Germany completed the sale of its seized Bitcoin holdings, providing BTC with a strong tailwind heading into the weekend.

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