Bitcoin has risen in price to a record of $40 thousand
The price of the first cryptocurrency for the first time rose to $40.3 thousand. Against this background, traders trading with leverage lost more than $800 million during the day due to liquidations.
The Bitcoin rate for the first time exceeded $40 thousand. On January 7, the price of the first cryptocurrency reached $40.3 thousand and set a new historical maximum. Over the past 24 hours, BTC has risen in price by 15%, its value has risen by $5400, according to tradingview.com. In March 2019, the price of the coin fell to $3.8 thousand, since then the growth has been more than 950%.
Due to fluctuations in the bitcoin rate, traders’ positions were mass liquidated. According to bybt.com, over the past 24 hours, users who trade with leverage have lost about $800 million. The losses were mainly borne by those who held short positions, that is, they expected the price of BTC to fall. In total, the exchanges liquidated the positions of more than 100 thousand traders, the loss of one of them exceeded $20 million.
A few minutes after updating the record, the price of BTC fell sharply to $38 thousand. Then it briefly recovered to $39.4 thousand. Soon the decline resumed, and the rate dropped to $ 37.6 thousand. In this regard, the daily volume of liquidations increased to $1.2 billion.
Earlier, strategists at JPMorgan bank predicted an increase in the price of bitcoin to $146 thousand in the long term. They assumed that in the future the first cryptocurrency would gradually replace gold as a “defensive asset”, and allowed its rate to rise to $50-100 thousand in the coming year.
On the contrary, the commercial director of the Bitpay cryptocurrency payment system Sonny Singh warned of the risk of a sharp drop in the bitcoin rate to $20,000. Such a scenario is possible if institutional investors start selling cryptocurrency, which will be a sell-off of “unprecedented proportions,” Singh explained.