• 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. 

FXStreet analysts have evaluated the Ethereum price trend and predicted a selloff in ETH if the price drops to $4,300. 

 

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