The price of Bitcoin surged back above $42,000 on Friday to levels not seen in more than a week.
The price action led to the liquidation of nearly $96 million worth of cryptocurrency short positions, according to Coinglass. . Over the past 24 hours, liquidated Bitcoin leveraged positions have risen to more than $41 million, with more than $37 million of that being short positions.
The largest digital asset by market cap is up more than 5% in the last 24 hours to change hands for $42,085 at 1:10 p.m. ET.
Bitcoin's rally today comes after a significant number of Bitcoin options expired on Friday. As expiration approaches, 94,000 Bitcoin options expired with a put-call ratio of 0.51, which is interpreted as a bullish indicator for the asset, Greek Live reported.
Open interest in Bitcoin options dropped significantly after Friday's expiration, easing the derivatives market's restrictions on the digital asset.. Bitcoin price correction predicted
Earlier this week, BitMEX co-founder Arthur Hayes expressed confidence that the price of Bitcoin will continue to decline. In a blog post on Tuesday, Hayes predicted a 30% correction in Bitcoin's price, which reached around $48,000 immediately after the Jan. 10 approval of several Bitcoin spot exchange-traded funds.
According to Hayes, this correction could push Bitcoin lower towards the $33,600 level, eventually establishing a new support zone between $30,000 and $35,000.
“A 30% adjustment from the ETF approval maximum of $48,000 is $33,600. Therefore, I believe Bitcoin is forming support between $30,000 and $35,000,” Hayes wrote in his blog.