- As Bitcoin price crossed $65,000 and Ethereum hit a new all-time high, short positions were liquidated across spot exchanges.
- Ethereum gas fees plummeted over the past five days, pushing the ETH Network's hash rate higher.
- Based on Glassnode data, the Bitcoin exchange balance hit a new low in three years, fueling investors' bullish outlook on BTC.
Overall, crypto market capitalization has crossed $3 trillion as Ethereum hit a new all-time high. Liquidated short positions in Bitcoin and Ethereum futures contracts across derivatives exchanges hit a new three-year high.
Massive liquidations in Bitcoin and Ethereum as price rally continues
Over the past five days, there has been a consistent drop in gas fees on the Ethereum network. This has propelled the altcoin's price higher, hitting a new all-time high of $4,782.
The average transaction fee has plunged over 33% since Tuesday. The dropping gas fees has triggered a spike in the Ethereum network's hash rate.
Hash rate is a measure of the computing power of the network. Historically, a high hash rate is correlated with a spike in Ethereum price.
Based on data from on-chain market intelligence platform Glassnode, the amount of Bitcoin and Ethereum liquidations within an hour of ETH hitting a new all-time high crossed $118 million.
Crypto bears betting on a drop in Bitcoin and Ethereum price got slaughtered as $118 million worth of short positions in BTC and ETH futures contracts were liquidated. Short positions represent the market participants betting against a rally in the asset's price.
Bitcoin balances across exchanges hit a new low, creating a shortage in supply. Supply shortages are associated with a rise in the price of the asset.
Pseudonymous cryptocurrency analyst @rektcapital observes that traders' sentiment towards Bitcoin is bullish. The Fear and Greed index currently reads "Greed," indicating further room for an upward climb in BTC price.
#BTC is on the cusp of breaking to new All Time Highs and enjoying a parabolic run in Price Discovery— Rekt Capital (@rektcapital) November 8, 2021
Investor sentiment towards $BTC is quite greedy, but it is greed that strongly propels price to unimaginable highs once in Price Discovery#Crypto #Bitcoin pic.twitter.com/lm6Bihcdzm
FXStreet analysts have evaluated the Ethereum price trend and predicted a selloff in ETH if the price drops to $4,300.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.