Crypto bears slaughtered as Bitcoin and Ethereum hit new all-time highs
- 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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
