Bitcoin reached a new all-time high of $24,217 on Saturday, December 19, 2020, before retreating slightly below $24,000. The surge came amid a broader crypto market rally that saw the total cryptocurrency market capitalization increase by more than 10% over the past seven days. According to data from Coinalyze, the rally triggered a massive wave of short liquidations, with over $1 billion in short positions wiped out over the prior two days.
Bitcoin Breaks $24K, Altcoins Rally
At approximately 11:45 a.m. EST on Saturday, Bitcoin touched an intraday high of $24,217 but quickly fell back. At press time, the leading cryptocurrency by market cap was trading at $23,423. Bitcoin has gained 21% over the past week, 25.1% over the last 30 days, and an impressive 124% over the last 90 days. Its market dominance currently stands at 65%.
Ethereum (ETH) also performed well, rising 9% on the week and 26% over the past 30 days, currently trading at $646. The asset has surged over 90% over the last three months. XRP, the third-largest cryptocurrency, was trading at $0.57, up 10.9% weekly and 146% over the past 90 days. Litecoin (LTC) showed even stronger momentum, gaining 40% this week and 168% over the last 90 days, now at $113. Bitcoin Cash (BCH) rose 25% on the week and 62% over the last 90 days, trading at $350 with a market cap of $6.74 billion and $4.8 billion in global trading volume.
Massive Short Liquidations Fuel Rally
Data from Coinalyze revealed extreme trading volumes on Friday: $80 billion in futures and $10 billion in spot markets. The firm noted that $800 million in total positions were liquidated, encompassing both longs and shorts. Over the preceding two days, shorts alone accounted for $1 billion in liquidations. This liquidation cascade likely provided additional upward momentum as bearish traders were forced to cover their positions.
Experts Predict Bull Run Could Last Through 2021
Finder's 2021 Bitcoin Predictions Report surveyed 47 industry experts, with 58% expecting the current bull run to last at least until the second half of 2021. The survey was conducted in early December, before Bitcoin first broke above $20,000. However, a majority of panelists also warned of a sharp drop after Bitcoin reaches its peak. Gavin Smith, managing partner at Panxora Crypto Hedge Fund, commented: "Bitcoin is now being used as a hedge against fiat money printing by early adopters in both retail and institutional sectors. This trend is expected to continue. We don't believe this will be an uninterrupted move higher, we expect the market will exhibit high volatility to both the upside and downside but with a clear bias to higher levels."