Bitcoin Reaches $21,000 as Crypto Industry Still Faces Woes

A record-high quantity of Bitcoin has already been exchanged this year.

A total of 132,021 traders also sold their positions, with the highest liquidation, according to Coinglass, being a $6.84 million short bet against Bitcoin.

The cryptocurrency industry may have heaved a sigh of relief for the first time since the FTX meltdown last year. This was caused by Bitcoin (BTC), which last week temporarily surpassed $21,000. After a little correction early on Sunday, BTC is currently trading around $20,800 (at the time of posting the piece). According to Dhruvil Shah, senior vice president, technology, Liminal, a platform for digital wallet infrastructure, "the majority of exchange-purchased Bitcoin was promptly removed, and Bitcoin worth $255 million was placed in self-custody."

This follows many news reports regarding CoinDCX dismissing between 80 and 100 employees. In addition, a number of industry closures occurred in the past year in addition to the FTX scandal.

Data from Coinglass, a company that provides statistics on cryptocurrency trading, shows that $721 million worth of cryptocurrency was liquidated in the previous day. A total of 132,021 traders sold their positions, with the highest liquidation being a $6.84 million short bet against Bitcoin. "Ethereum is moving forward and gaining pace. According to Shrikant Bhalerao, co-founder of Seracle, "the US consumer price index (CPI) data released on January 12, 2023, validated the notion that inflation was continuing to decline.

Bitcoin: Net transfer volume. Source: Glassnode

Strangely, despite the fact that there have been several Bitcoin purchases over the past day, the number of Bitcoin leaving exchanges has risen to a record high for the year so far. The unwinding of cryptocurrency long positions has the reverse impact on USD short holdings, according to this theory. Binance and USD-denominated futures were launched in July 2021, according to Shah.

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