Bitcoin unexpectedly increased in price by more than 3% in a day, reaching the mark of $102.5 thousand, and at the peak of trading exceeded $104 thousand, setting the highest indicator since January 31 of this year. About this informs CoinDesk.
Such a rapid growth came as a surprise to the market and led to significant losses among traders who expected a fall in the value of the cryptocurrency. The main factor influencing the price jump was the announcement by US President Donald Trump about concluding a new large-scale trade agreement with Great Britain.
The total market capitalization of cryptocurrencies, excluding Bitcoin, increased by 10% to $1.14 trillion, the highest level since March 6. As a result of the sharp growth of the market, traders lost about $400 million on short positions — bets on the decline of the bitcoin rate. This is the largest volume of liquidations since November last year. Also, positions worth $22 million in longs, which could not withstand fluctuations in the exchange rate, were closed.
The predominance of shorts over longs suggests that many traders were counting on a decline in the value of Bitcoin, but the opposite happened. Analysts suggest that the market retains the potential for further growth.
We will remind that on May 8, the USA signed a new trade agreement with Great Britain. According to Trump, its implementation will bring $6 billion to the American economy from tariffs on British goods and another $5 billion in revenue due to the expansion of opportunities for American exports.
