Bitcoin Breaks $65K as Short Traders Face Massive Liquidations

The cryptocurrency markets rallied on Monday, liquidating future traders worth over $180 million.

Bitcoin (BTC) soared by over 5% crossing $65,000, while Ethereum (ETH) rose by more than 7%, climbing past $2,600. Solana (SOL) and Polkadot (DOT) posted gains of more than 7% and 5%, respectively.

As Bitcoin surged past $65,000, short positions in the crypto market were hit hard. Over the past 24 hours, more than $57 million in Bitcoin shorts were liquidated, with total liquidations across the crypto market exceeding $180 million, according to CoinGlass data. The liquidation event impacted over 56,000 traders.

Low Search Interest

The rally comes as Google search interest for the term "Bitcoin" has dropped to its lowest levels since October 2023, according to Google Trends data. The global search volume for Bitcoin currently sits at a value of 14, down from a peak value of 100 in May 2021.

Analysts view this declining search interest as a potential signal for market rallies, as historically, price surges have followed periods of low search interest.

“The last time search interest dropped this low, Bitcoin jumped from $41,000 to nearly $71,500 within a matter of weeks. This suggests that buying during these quiet periods remains a rational strategy,” said Ryan Lee, Chief Analyst at Bitget Research.

Jonathan de Wet, Chief Investment Officer at Zerocap, in a weekly market wrap predicted that Bitcoin could reach $70,000 in the coming weeks, citing a "textbook break of trendline resistance" and support from strong technical indicators.

Political Factors Drive Crypto Inflows

Cryptocurrency investment products recorded another strong week, with Bitcoin leading inflows at $419 million, according to CoinShares’ weekly report.

Total digital asset inflows reached $407 million, bouncing back from the previous week’s $127 million sell-off despite strong U.S. economic data. James Butterfill, CoinShares’ head of research, attributed the increase to political factors, particularly the upcoming U.S. elections.

"Polling toward the Republicans" led to “an immediate boost in inflows and prices,” Butterfill explained, adding that Republicans are viewed as more supportive of digital assets.

“Investor decisions have likely been more influenced by the upcoming US elections than by monetary policy outlooks,” wrote Butterfill.

Ethereum continued its outflows last week, with a total of $9.8 million withdrawn from its spot ETFs.

Stock Markets Trade Flat

While the crypto market soared, U.S. stocks gained, with major indexes adding less than 1%.

In the U.S., the Consumer Price Index (CPI) report on Oct.10 revealed that prices rose at an annualized 2.4% in September. Economists polled by Dow Jones had expected a 2.3% rise. This decrease, attributed to falling gas prices and minimal food cost increases, brings inflation close to the Federal Reserve’s 2% target.

This comes as investors brace for a week of corporate earnings reports, which could further impact market sentiment.