Bitcoin broke 66 thousand dollars for the first time! Next up is $70K?
Bitcoin started the week on a high note, rising above $66,000 for the first time since late September, sparking excitement in the crypto world. The rally has raised many questions: What makes Bitcoin soar? And can it continue to grow to $70,000?
Why is the price of Bitcoin rising?
On Monday, Bitcoin saw a sudden increase, rising 6.9% in just eight hours, reaching the highest trading volume in two weeks. Blockchain analytics platform Santiment reports that Bitcoin's DeFi liquidations—forced sales in decentralized financial markets—have reached their second highest level in three months.
Historically, such flows have triggered strong uptrends for Bitcoin, indicating that the rally is likely to continue in the coming days.
Interestingly, the same liquidity surge earlier this year resulted in a 29 percent price rally. This pattern suggests that Bitcoin may have more room to grow if history repeats itself.
Can Bitcoin reach $70,000?
As the price of Bitcoin rose, optimism increased, leading to open interest—specifically generating call options to $70,000. This metric shows that traders are now playing for more profit, with fewer positions being held on the short side.
Funding rates for futures contracts on exchanges such as BitMEX and Binance began to fluctuate, indicating a growing interest in maintaining long positions. Meanwhile, this shift to long positions suggests that traders are optimistic about the $70,000 mark as the next milestone.
Stablecoin earnings add fuel to Rally
Adding to the momentum, Tether's entry into exchanges earlier in the day was notable. Stablecoin earnings are often seen as “dry powder” in the market, which, as soon as fresh money is introduced, can probably sustain the rally.
Unlike Bitcoin earnings, which indicate a desire to sell, stablecoins often indicate additional capital ready to buy.
As Bitcoin teases a return to an all-time high of $70,000, increasing open interest, short liquidity and fresh stable coin flow point to strong support for an extended rally.
