Bitcoin prices have been quite volatile in recent days, regularly breaking beyond $40,000, but things have since calmed down as it continues to struggle to stay above that level.
Yesterday, around 18:00 UTC, the world’s most popular digital currency reached $40,373, but it couldn’t sustain the level and went down below the psychological price level.
The digital asset traded near to the aforementioned price level, topping it many times before falling below $40,000. Bitcoin was trading near $38915 at the time of writing, with a 2% change in the past 24 hours.
The majority of other big cryptocurrencies have been fluctuating as well. Ethereum, Solana (SOL), Polkadot (DOT), Terra (LUNA), Cardano (ADA), and Binance Coin (BNB) have all fallen 0.32 percent, 0.82 percent, 1.55 percent, 2.08 percent, 1.71 percent, 0.05 percent, and 3.46 percent in the last 24 hours, respectively.
According to coinglass statistics, the choppy market price action has resulted in substantial liquidation of both long and short orders, with short orders outnumbering long orders by 63.06 percent.
40,464 traders liquidated their short positions across the cryptosphere in the last 24 hours, bringing the total amount liquidated to about $155 million.
Traders reacting to growing interest from miners in the Bitcoin network, whose hash rate established a new record high yesterday, are to credit for the initial jump above $40,000.
The mining difficulty of the Bitcoin network has also grown to new historic highs, reaching 29.70 trillion, as more miners compete to mine the next block as the mining difficulty rises. The mining difficulty has been tweaked to keep the block creation duration at 10 minutes.