Cryptocurrency Market Reactions: Bitcoin Tops $110,000 Amidst Economic Data Shifts
Bitcoin briefly surged above the $110,000 mark Thursday, triggering substantial liquidated short positions across the broader crypto market, according to new data.
- Price movement followed the release of the ADP National Employment Report.
- Bitcoin settled at $109,720, a 1.8% gain, though still below its $111,814 all-time high.
- CoinGlass reported over $101 million in short Bitcoin positions and $91.2 million in short Ethereum positions liquidated over the past 24 hours.
- This brings the total short position liquidations across the crypto market over the last day to approximately $192 million.
Financial markets interpreted the ADP report, which showed a first-time decline in U.S. private payrolls since 2023, as signaling a potential earlier Federal Reserve interest rate cut. This boosted expectations for a July cut to 25.3%, influencing gold and the U.S. dollar and positively impacting crypto assets.
The broader cryptocurrency market cap saw a slight decline of 0.3% over the previous 24 hours, to $3.48 trillion.
Ethereum and Other Altcoins
Ethereum saw a significant climb of 5.5% over the past day, trading around $2,600, its highest point since mid-June, according to CoinGecko.
Other altcoins also posted strong gains:
XRP (+4.9%), Dogecoin (+7.3%), and Cardano (+7%) were among the top performers.
ETF Flows
Wednesday saw substantial inflows into U.S. spot Bitcoin exchange-traded funds, recording $407.8 million net inflows. Fidelity’s FBTC was the leading recipient, attracting $184 million.
In contrast, Ethereum ETFs recorded an outflow of $1.9 million on Wednesday, according to Farside data.
Key Technical Levels
An analyst from derivatives exchange Bitunix pointed out that Bitcoin had “broken through its short-term descending trendline” and “is approaching the key resistance level.” They noted support levels around $105,000 to $102,560, suggesting that holding above these levels could sustain bullish momentum.
