Bitcoin kicked off the week with an impressive surge, soaring past $66,000 for the first time since late September, sparking excitement across the crypto world. The rally brings up many questions: What’s pushing Bitcoin higher? And could it keep climbing toward $70,000?
Why Bitcoin’s Price Is Soaring
On Monday, Bitcoin saw a sudden surge, rising 6.9% in just eight hours, reaching some of its highest trading volumes in two weeks. Blockchain analytics platform Santiment reported that Bitcoin’s DeFi liquidations—forced sell-offs in decentralized finance markets—hit their second-highest level in over three months.
Historically, such liquidations have triggered strong upward trends for Bitcoin, indicating the rally could continue in the coming days.
Interestingly, a similar spike in liquidations earlier this year led to a 29% price rally. This pattern suggests that Bitcoin may have more room to grow if history repeats itself.
Can Bitcoin Reach $70K?
As Bitcoin’s price rose, optimism surged, leading to increased open interest—particularly in call options aiming for a breakout toward $70,000. This metric shows that traders are now betting on further gains, with fewer positions being held on the short side.
On exchanges like BitMEX and Binance, funding rates for futures contracts began shifting, reflecting growing demand to maintain long positions. Meanwhile, this shift toward long positions hints that traders are feeling optimistic, eyeing the $70,000 mark as the next big milestone.
Stablecoin Inflows Add Fuel To Rally
Adding to the momentum, there were noticeable inflows of Tether to exchanges earlier in the day. Stablecoin inflows are often seen as “dry powder” in the market, signaling that fresh money is being introduced, possibly sustaining the rally.
Unlike Bitcoin inflows, which can signal an intent to sell, stablecoins usually indicate more capital ready to buy in.
As Bitcoin teases a return to its $70,000 all-time high, the increase in open interest, short liquidations, and fresh stablecoin inflows suggest strong support for an extended rally.
