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CoinDesk1 min read
PENGU Notches Double-Digit Gains as Bitcoin Hits $78K Amid $418M Liquidation Spree
TL;DR
Bitcoin reached $78,000, causing $418 million in liquidations, primarily from shorts. Altcoins like PENGU gained 12.6% as market sentiment turned bullish.
Key points
- Bitcoin hit $78,000 triggering $418 million in liquidations
- Short positions accounted for $254 million of the liquidations
- PENGU gained 12.6% as Bitcoin surged
- Market sentiment has turned bullish
- 75% chance Bitcoin retests $84,000
PENGU
In brief
- Bitcoin hit $78,000 on Wednesday, triggering $418 million in liquidations over 24 hours, with shorts accounting for $254 million.
- Altcoins including PENGU and Cosmos have posted gains alongside Bitcoin
- Sentiment has flipped bullish amid crypto market recovery, with Myriad users assigning a 75% chance that Bitcoin retests $84,000 next.
Bitcoin has been on a steady uptrend in April, with shallow pullbacks, allowing altcoins to extend their gains.
Pudgy Penguins meme coin PENGU led altcoin gains, up 12.6% on the day, while Cosmos (ATOM), Aptos and Bitcoin Cash saw gains of over 5% over the past 24 hours.
The altcoin surge comes as Bitcoin hovers around $78,000, up nearly 2% over the past 24 hours, according to CoinGecko data. If the bullish momentum persists, the leading crypto could revisit $80,000 for the first time in over two and a half months, analysts suggested.
“What we’re seeing right now is a mix of both early rotation and mechanically driven upside,” Wenny Cai, founder of Anchored Finance, told Decrypt. “There is some genuine capital moving out along the risk curve as Bitcoin consolidates, particularly into higher-beta majors and select narratives. But the velocity of the move suggests that short covering and leverage are amplifying it.”
As a result, almost $418 million in leveraged positions have been wiped out, with more than $286 million coming from bears or short sellers, suggesting these investors were caught off guard, per CoinGlass data.
Investor sentiment has flipped bullish, with users on prediction market Myriad, owned by Decrypt’s parent company Dastan, assigning a 75% chance that Bitcoin’s next push could send it to $84,000. Those odds have increased from roughly 45% on April 1, underscoring increasing investor optimism amid the ongoing uptrend.
Looking ahead
Nevertheless, the bullish outlook remains uncertain. From a technical standpoint, a Schwab strategist identified $83,000 as a key resistance level, which is the average cost basis of Bitcoin ETP investors, according to a previous Decrypt report.
Q&A
What caused the $418 million liquidation in the crypto market?
The liquidation was triggered by Bitcoin hitting $78,000, leading to significant short positions being liquidated.
How much did PENGU gain amid Bitcoin's price surge?
PENGU gained 12.6% in value as Bitcoin's price rose to $78,000.
What is the current market sentiment regarding Bitcoin's price movement?
Market sentiment has flipped bullish, with a 75% chance predicted for Bitcoin to retest $84,000.
Which altcoins besides PENGU saw gains alongside Bitcoin?
Other altcoins like Cosmos, Aptos, and Bitcoin Cash also experienced gains of over 5% in the past 24 hours.
