"It really exploded"...Bitcoin surge annihilates short sellers

▲ Virtual asset trading

Bitcoin (BTC) temporarily surpassed the $80,000 mark, creating a massive surge in the virtual asset market.

According to a CoinGeape report on May 4 (local time), Bitcoin surged by nearly 3% over the past 24 hours, reaching a high of $80,596. Trading volume increased by 114%, and the total market capitalization of virtual assets rose by approximately 2%. On the last trading day alone, about $630 million flowed into Bitcoin spot ETFs, demonstrating investor confidence.

The catalysts for this rally are regulatory easing and the de-escalation of geopolitical tensions. Patrick Witt, White House advisor on virtual assets, indicated the possibility of deliberating the CLARITY Act (US Crypto Market Structure Bill) in May, following an agreement on stablecoin yields. President Trump's announcement to help escort ships in the Strait of Hormuz also eased geopolitical risks, inducing a short squeeze and reducing selling pressure.

The consequence of the surge was the annihilation of short sellers. According to CoinGlass data, approximately 110,000 traders were forcibly liquidated in the past 24 hours, with total liquidations amounting to $370 million. Short sellers suffered massive losses in Bitcoin, Dogecoin (DOGE), XRP, Zcash (ZEC), and Terra Luna Classic (LUNC).

Experts are predicting the entry into a full-fledged bull market. Adam Back, CEO of Blockstream, noted that Bitcoin's 200-week moving average had broken above $60,000, indicating that a bottom signal has been detected. The Grayscale research team also analyzed that Bitcoin has formed a bottom in the $65,000 to $70,000 range. 10x Research stated that Bitcoin has shown its first bull market signal and that the medium-term technical outlook is improving faster than expected.

The altcoin market is also heating up. Dogecoin surged over 4%, with a weekly gain exceeding 15%. XRP recaptured $1.41 amid whale accumulation and expectations of spot ETF inflows. Zcash continued its rally, bolstered by positive outlooks from Barry Silbert and Arthur Hayes, while Terra Luna Classic surged over 7% on news of Binance's token burn and software updates.

Bitcoin is currently trading around the $79,000 mark due to profit-taking. The greed index is rising, and inflows into spot ETFs are continuing, keeping expectations for further gains high. While the Fed's division and an overheated stock market could act as variables, the improvement in technical indicators is encouraging.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*