On October 5, Bitcoin, the leading cryptocurrency, achieved a remarkable milestone by reaching a new all-time high (ATH) of $125,708. However, shortly after this peak, the asset experienced a slight correction, stabilizing at $124,900 by the time of reporting. This significant surge represents a 14% increase over the past week, highlighting Bitcoin’s continued volatility and potential for growth.
Interestingly, while Bitcoin’s record gain captured headlines, other cryptocurrencies had relatively muted responses. Ethereum, for instance, tested the $4,600 mark briefly before retracting to approximately $4,500. Solana, on the other hand, saw a modest increase, rising to $235, translating to a 2.5% daily gain. Dogecoin also made headlines, climbing to $0.26, reflecting a 2.3% increase.
In terms of market activity, liquidation volumes surged to $345 million within a 24-hour period, with shorts accounting for $220 million of that total, according to data from Coinglass.
Community reactions to Bitcoin’s ATH varied, showcasing both excitement and skepticism. Analyst Rekt Capital noted that if Bitcoin could “convincingly” break the critical resistance level of $126,500, it could experience a rapid increase in price.
Conversely, Nate Geraci, President of Nova Dius Wealth, contributed a dose of irony, pointing out that despite Bitcoin’s new record, many individuals remain unfamiliar with the cryptocurrency.
Data from Glassnode revealed a significant drop in the total balance of Bitcoin held on centralized exchanges, reaching a six-year low of 2.83 million BTC. Over the past month, nearly 170,000 BTC have been withdrawn from trading platforms. Matthew Sigel, Head of Digital Asset Research at VanEck, remarked that exchanges are running out of Bitcoin, suggesting that an official shortage may occur soon.
Investor and trader Mike Alfred shared insights from discussions with a prominent OTC trading desk operator, indicating that if current trading volumes continue, platforms could be completely out of Bitcoins for sale within two hours once futures trading opens on Monday—unless prices surge to the $126,000-129,000 range.
Additionally, CryptoQuant expert PelinayPA confirmed Bitcoin’s “healthy dynamics,” while analysts identified potential conditions for the cryptocurrency to ascend further, with targets set around the $200,000 mark.
The recent activities and analyses underline the complexities and rapid developments within the cryptocurrency sector, signaling both opportunities and challenges for investors and traders alike.
