Bitcoin Price

Bitcoin is currently trading at more than $40,500 (Yuichiro Chino/Getty Images)

Bitcoin broke the $40,000 mark again on Friday the 4th for the first time in two weeks as volatility on Wall Street proved to be a boon for the most optimistic cryptocurrency investors.


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Liquidation of short bitcoin positions increases

Data from Cointelegraph Markets Pro and TradingView shows that the BTC/USD pair suddenly crossed $40,000 on February 4 to generate quick gains just 2 hours after the opening on Wall Street.

So far, the pair has surged $3,000 in 2 hours – an unexpectedly strong performance that naturally caused a lot of pain for short sellers.

According to Coinglass, $50 million of bitcoin was cleared in the last four hours, with the market clearing a total of more than $100 million.


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Analysts watching the $39,600 range to be tested and held are equally bullish.

"Well, I think people are starting to feel FOMO," commented Cointelegraph contributor Michaël van de Poppe. The acronym is an expression used to refer to investors who act impulsively out of fear of missing out on a good opportunity.

Despite the contrast between the company's numbers and its stock's performance, Wall Street opened with new gains for Amazon, which helped drive a bullish move in the cryptocurrency.

In the recent environment of indecision, many have taken the opportunity to reiterate higher price targets.

"I doubt that there are stocks that can be sold at $ 40,000. The stocks to be sold have been sold in a two-month downtrend that ended due to the macro panic," said a popular Twitter account that commented on the sustainability of these moves.

"It is also suspected that buyers in the $30,000 area are buying here. In many ways similar to the $6,000 level in 2019."

The bitcoin/USD pair reached $40,450 on Bitstamp before the consolidation phase began, and volatility is still very much in evidence.

Ether down nearly 30% from January

Other cryptocurrencies followed suit, with ethereum rising more than 10% on the day to reach the $3,000 mark.

The ETH/USD pair last traded at significant psychological levels with Bitcoin on January 21, just over ten days before it approached $2,000.


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The rest of the top 10 cryptocurrencies by market cap are in the green, with the best performer being Solana, up 13%.

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