Bitcoin Hits ATH Against Euro and Pound, Faces Dollar Resistance

Bitcoin (BTC) has reached unprecedented highs against the euro and pound currencies, marking a significant milestone in its price trajectory. On Monday, the leading cryptocurrency soared to all-time highs of €60,447 and £51,736 on Coinbase, buoyed by a surge in market demand.

Bitcoin’s Market Consistency

In the past 24 hours alone, Bitcoin’s value has surged by almost 6%, with prices lingering near $65,163 as of 5:34 a.m. ET, marking a notable rally. So far, in 2024, Bitcoin (BTC) has experienced a perfect performance, consistently climbing above the $55,000 price threshold.

However, despite this impressive surge, Bitcoin has not yet exceeded its previous peak in U.S. dollar value, which reached over $69,000 on Coinbase in November 2021.

Bitcoin’s Performance against Dollar Index

In the meantime, the Dollar Index, which serves as a vital measure of the U.S. dollar’s performance against key international currencies, has shown a consistent upward trend over the past few weeks. Having accumulated a total increase of 2.7% during January and February of 2023, the index indicates a bolstering U.S. dollar, which could present a hurdle for Bitcoin’s upward movement.

The market performance of Bitcoin seems to align with the position of Michael Saylor, chairman of MicroStrategy, which he stated during a panel discussion at the Bitcoin Atlantis conference. Saylor maintained that the market trajectory of Bitcoin mirrors his prediction of a decade-long “gold rush” for BTC spurred by institutional interest and the emergence of autonomous artificial intelligence, particularly with the approval of spot Bitcoin exchange-traded funds (ETFs).

The sharp rise in Bitcoin’s value has resulted in a significant number of leveraged bitcoin positions being liquidated, indicating increased market volatility. According to CoinGlass data, the price surge led to the liquidation of over $80 million worth of bitcoin positions in the last 24 hours, mainly short positions.

Crypto Liquidation

In just the past 24 hours, the wider cryptocurrency market experienced a remarkable $160 million in liquidated short positions, adding to a cumulative total of $251 million in liquidations across multiple centralized exchanges.

Liquidations happen when traders’ positions are automatically terminated because they lack adequate funds to offset losses, often triggered by unfavorable market shifts. As seen in mid-January, liquidation could cause an upset to the market activities.

Concurrently with Bitcoin’s rise, the GM 30 Index, comprising a carefully chosen assortment of the leading 30 cryptocurrencies, increased by 4.22% over the last 24 hours, reaching a value of 139.68, mirroring a broader positive market outlook and investor confidence.