Bitcoin, Ethereum, Dogecoin Soar, Triggering $750M In Liquidations: Analyst Predicts King Crypto To Reach $200K If This Key Level Is Broken

In a whirlwind of activity, major cryptocurrencies Bitcoin, Ethereum, and Dogecoin experienced a substantial surge, igniting excitement and investor fervor. On February 28, Bitcoin, the poster child of digital currencies, rallied over 10%, soaring to a new high for 2024, smashing through the $64,000 mark.

This surge, marking a 50% increase in price for the month, is primarily attributed to investors eagerly anticipating the upcoming supply halving event, a phenomenon historically associated with robust upward price movements. Furthermore, the steady inflows into newly introduced spot Bitcoin Exchange Traded Funds (ETFs) are believed to have exerted a significant influence on Bitcoin’s price action, amplifying the bullish sentiment among investors.

However, amidst the euphoria, over 182,243 traders found themselves facing liquidation, with a staggering total liquidation value of $751.10 million, as reported by data from CoinGlass. The liquidations spanned across various cryptocurrencies, with Bitcoin, Ethereum, and Dogecoin witnessing significant activity.

Bitcoin, the titan of the cryptocurrency realm, witnessed total liquidations amounting to $292.05 million, encompassing both long and short positions. Ethereum, the second-largest cryptocurrency by market capitalization, saw total liquidations tallying $123.73 million, while Dogecoin, the meme-inspired digital asset, experienced liquidations totaling $39.84 million.

Following Bitcoin’s meteoric rise to $64,000, a sudden flash crash ensued, with the price plummeting to $58,700. This abrupt downturn was attributed to a formidable sell wall at this critical level, compounded by the liquidation of overleveraged long positions. However, despite this temporary setback, Bitcoin quickly rebounded, with its price stabilizing above the $61,000 mark at the time of writing.

The fervor surrounding cryptocurrencies extended beyond Bitcoin, with BlackRock’s Bitcoin ETF IBIT setting a new record for trading volume for the third consecutive day. Over 96 million shares, equivalent to approximately $3.3 billion, were exchanged, underscoring the escalating investor interest in digital assets.

Furthermore, the trading volume for the ten spot Bitcoin ETFs soared to $7.7 billion, eclipsing the previous record of $4.7 billion set on their inaugural trading day. This surge in trading activity reflects the growing acceptance and adoption of cryptocurrencies within traditional financial markets.

Amidst the crypto frenzy, the global cryptocurrency market cap surged to $2.26 trillion, signaling a 4.97% increase in the past 24 hours. However, while cryptocurrencies basked in the limelight, traditional stocks experienced a modest retreat on Wednesday, with investor focus shifting to an impending key inflation report.

The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all witnessed minor declines, highlighting the cautious sentiment prevailing among investors awaiting crucial economic data. Attention now turns to the personal consumption expenditure reading for January, slated for release on Thursday, serving as the Federal Reserve’s preferred gauge of inflation.

In light of the cryptocurrency surge, analysts offer divergent perspectives on Bitcoin’s trajectory. Michael Van de Poppe, a prominent cryptocurrency analyst, highlights the lagging performance of altcoins amidst Bitcoin’s dominance but anticipates a potential doubling in altcoin market capitalization once Bitcoin stabilizes.

Meanwhile, pseudonymous analyst DonAlt identifies a critical resistance level for Bitcoin, situated at $60,360, signaling a pivotal juncture in Bitcoin’s journey towards all-time highs. Echoing this sentiment, hedge fund manager Dan Tapiero predicts a potential surge in Bitcoin’s price, envisioning a trajectory ranging between $90,000 and $200,000 by 2024, buoyed by favorable macroeconomic conditions.

In conclusion, the cryptocurrency market’s recent surge has reignited optimism among investors, with Bitcoin leading the charge towards unprecedented price levels. However, amidst the excitement, caution prevails, as investors brace for potential market volatility and navigate the evolving landscape of digital assets. As Bitcoin inches closer to critical resistance levels, the crypto community eagerly awaits the next chapter in its remarkable journey.