Bitcoin, the leading cryptocurrency in the market, has reached its highest point in nearly eight weeks following a significant surge in its price.
As of recent data, Bitcoin is trading around the $96,800 mark, having experienced a gain of over 4.5% in the past 24 hours. The weekly increase now exceeds 5%, and Bitcoin's market capitalization is approximately $1.93 trillion.
Market Dynamics and Short Squeeze
The recent upward movement in Bitcoin's price was accompanied by substantial market activity. In the last 24 hours, a total of $767 million in liquidations occurred across the cryptocurrency market. A significant portion of these liquidations, amounting to $666 million, involved short positions. This data suggests that the price increase was substantially driven by a short squeeze effect, where traders betting on a price decrease were forced to buy back to cover their positions, further fueling the rally.
Future Price Projections
Looking ahead, market sentiment indicates optimism regarding Bitcoin's future price trajectory. According to data from Polymarket, the probability of Bitcoin surpassing the $100,000 level in January is currently priced at 63%.
While the $100,000 mark appears achievable for many observers, the probabilities decrease for higher targets. The data suggests approximately a 28% chance of Bitcoin reaching $105,000, a 9% chance for $110,000, and a 4% chance for $115,000. Lower probabilities are assigned to even higher targets, with a 2% chance for $120,000 and less than 1% for $150,000.