Bitcoin($BTC) surpasses $94,000… ETF funds flow in 6.8 trillion won, short positions liquidated worth 420 million dollars

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Bitcoin Surpasses $94,000… Short Liquidation Fueled by ETF Fund Inflows

The cryptocurrency market continues its upward trend despite geopolitical crises. Bitcoin(BTC) has broken through $94,000(approximately 13,593,000 KRW), rising by 3.5%, and Ethereum(ETH) also increased by 3.2%, trading around $3,240(approximately 46,860,000 KRW). The overall bullish momentum in the market is attributed to ETF fund inflows and large-scale short position liquidations.

As of January 5(local time), Bitcoin was traded at $94,340(approximately 13,643,000 KRW), up 3.5% from the previous day, gaining 8% over the past week. Ethereum also recorded an 11% increase during the same period.

Among top coins, Ripple(XRP) surged over 11%, reaching $2.33(approximately 3,368,000 KRW), showing the most notable rise. Solana(SOL) rose nearly 4%, reaching $139(approximately 2,010,000 KRW). Meanwhile, Tron(TRX) slightly declined, fluctuating around $0.29(approximately 420 KRW).

Clear Effect of ETF Inflows… Over $400 Million Flown into Bitcoin ETF

Fund flows into ETF(Exchange-Traded Funds) also boosted the market rebound. On January 2, net inflows of $471.1 million(approximately 682 billion KRW) into spot Bitcoin ETFs, and $174.4 million(approximately 252.4 billion KRW) into Ethereum ETFs were recorded. This indicates renewed institutional demand.

XRP and Solana ETFs also saw net inflows of $13.6 million(approximately 19.6 billion KRW) and $9.7 million(approximately 14 billion KRW) respectively. This highlights the diversification of digital asset investment beyond just BTC and ETH.

$4.2 Billion Liquidated… Bitcoin Positions Account for $2.2 Billion

The upward market trend is also reflected in derivatives liquidation. A total of $42.76 million(approximately 6,187 billion KRW) worth of positions were liquidated in 24 hours. Of these, short positions betting on price declines accounted for most, at $34.73 million(approximately 5,027 billion KRW).

Bitcoin liquidation amounted to $22.8 million(approximately 3,298 billion KRW), Ethereum $7.34 million(approximately 1,062 billion KRW), and Ripple and Solana were also liquidated over $17.5 million(approximately 2,540 billion KRW) and $14.3 million(approximately 2,070 billion KRW) respectively, further fueling the bullish trend.

Market Cap Surpasses $3.3 Trillion… Bitcoin Dominance at 57%

The total cryptocurrency market capitalization increased by 3% from the previous day, reaching $3.31 trillion(approximately 4,791 trillion KRW). Trading volume exceeded $139 billion(approximately 201 trillion KRW), with Bitcoin’s market share at 57.2% and Ethereum’s at 11.8%.

Some analysts interpret this as cryptocurrencies gaining recognition as a hedge against geopolitical risks. The influx into ETFs, short liquidations, and geopolitical instability in currency-unstable countries are stimulating a preference for safe-haven assets.

Market Interpretation

Despite geopolitical tensions, the cryptocurrency market remains bullish. ETF inflows and large-scale short liquidations are supporting price increases, indicating a revival of risk appetite among investors.

Strategic Points

Trends in ETF flows and derivatives positions serve as key indicators of short-term market movements. It is important to monitor not just individual assets but the overall flow of ETFs across specific sectors.

Terminology

• ETF(Exchange-Traded Fund): A financial product traded like stocks that makes it easy to invest in cryptocurrencies
• Short Position: An investment strategy betting on asset price declines
• Liquidation: The forced closing of positions due to insufficient margin