Bitcoin Hits $21,000 as Cryptocurrency Industry Continues to Face Trouble

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For the first time since the collapse of FTX last year, the cryptocurrency industry may have breathed a sigh of relief. This was due to Bitcoin (BTC) briefly surging above $21,000 last week. BTC is currently trading at $20,800 (at the time of the story’s publication) after a slight retracement early on Sunday. The majority of bitcoins purchased on the exchange were quickly withdrawn and $255 million worth of bitcoins were placed in self-custody,” said Dhruvil Shah, senior vice president, technology, Liminal, a wallet infrastructure platform digital, to FE Blockchain.

This follows multiple reports of CoinDCX laying off around 80-100 employees. Not to mention that the industry over the past year has seen several shutdowns in addition to the FTX scandal.

According to data from Coinglass, a cryptocurrency trading information platform, the cryptocurrency market saw a selloff worth $721 million in the past 24 hours. A total of 132,021 traders liquidated, with a short bet of $6.84 million against Bitcoin being the biggest liquidation. Ethereum is gaining momentum and going strong. US Consumer Price Index (CPI) data released on January 12, 2023 confirmed the thesis that inflation was continuing to decline,” noted Shrikant Bhalerao, co-founder of Seracle.

Bitcoin: net transfer volume. Source: Glassnode

Interestingly, even though there have been a lot of bitcoin buying over the past day, the amount of bitcoin leaving exchanges hit an all-time high at the start of the year. “The unwinding of long positions held in cryptocurrency has the opposite effect on short positions held in USD. July 2021 saw Binance and USD-denominated futures,” Shah noted.

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