Bitcoin is taking off again and the market is racing!

After a period of relative stability, Bitcoin woke up with a bang, crossing the $64,000 mark and bringing a wave of liquidations in its wake. The sudden move hit traders who had bet on a market decline hard, causing liquidations of short positions exceeding $100 million. For many observers, this unexpected rise in Bitcoin marks a turning point and perhaps heralds a more sustained phase of growth, often referred to as “Uptober”. But what triggered this storm of liquidations, and what are the effects?

A wave of massive liquidations: the bears crushed

Bitcoin’s rally to $64,000 caught many traders off-guard, particularly those who had taken short positions.

By betting on a decline in Bitcoin, they probably did not anticipate such a rise. Result ? In one day, over $101.4 million in short positions were liquidated in the crypto market, with Bitcoin alone accounting for $52.33 million of that total.

Ether, for its part, also participated in the carnage, with short position liquidations reaching $27.26 million.

These massive liquidations can be explained by the very nature of short positions. When a trader bets on Bitcoin falling, they borrow the cryptocurrency to sell it, with the intention of buying it back at a lower price.

But when Bitcoin gains value, like in the last 24 hours, these traders must buy back quickly to limit their losses, triggering a series of automatic liquidations. »

This phenomenon amplifies volatility and accentuates the rise in prices, creating leverage on the rise of Bitcoin.

Bitcoin’s return to this level not only shook up skeptics, it also solidified its market dominance, pushing it above 58%.

This figure is close to levels last reached in April 2021, demonstrating the growing impact of Bitcoin in the current crypto landscape.

The renewed interest in Bitcoin, supported by these forced liquidations, could well mark the start of a new chapter in what is traditionally called “Uptober”.

Outlook for the bitcoin market: Is Uptober really launched?

This “Uptober” phenomenon has become a sort of mantra for Bitcoin enthusiasts. Historically, October has often been a good month for BTC, with significant gains recorded in nine of the last eleven years.

On-chain analyst James Check sums up the current mood well with his pithy comment: “Pray for the bears”. This reversal in favor of the bulls is seen by some as an omen of a more sustained rally, potentially comparable to that observed during previous historic increases.

Some analysts go even further and suggest that this rebound could be one of the most exciting moves of the year.

Kyle Chassé, an influential market observer, shared with his 219,000 followers on X that the “tides are changing” and we are entering a very promising phase for the market.

The optimism around this rise of Bitcoin is not limited to this crypto. Ether, for example, has regained the $2,500 mark, and other altcoins like Solana are also posting impressive gains.

This context of generalized rise in cryptos seems to indicate that investors are back, encouraged by this positive dynamic. Although uncertainties remain, confidence is gradually building. In just a few days, Bitcoin not only crossed an important psychological threshold, but it also proved that its dominant position remains unshakeable despite its lowest level in Google searches.