Bitcoin price rose back above $42,000, sparking a surge in short liquidations.
The price of Bitcoin climbed back above $42,000 on Friday, a level not seen in more than a week.
Price action led to the liquidation of nearly $96 million worth of short cryptocurrency positions, according to Coinglass data. Over the past 24 hours, liquidated Bitcoin leveraged positions have surged to over $41 million, of which over $37 million were shorts.
The largest digital asset by market capitalization is up more than 5% in the past 24 hours and was trading at $42,085 at 1:10 PM ET, according to The Block data.
Bitcoin 
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It rose by more than $42,000. Image: Block.
Today’s Bitcoin rally comes after a significant number of Bitcoin options expired on Friday. As the expiration date approached, there were 94,000 Bitcoin options scheduled to expire and the put-call ratio was 0.51. This is interpreted as a bullish indicator for the asset. reported From Greece Live.
Bitcoin options open interest has declined significantly since expiration on Friday, easing derivatives market constraints for the digital asset.
Bitcoin price adjustment expected
Earlier this week, BitMEX co-founder Arthur Hayes expressed his belief that the Bitcoin price will continue to decline. In a blog post on Tuesday, Hayes predicted a 30% correction in Bitcoin, which reached around $48,000 shortly after the approval of several spot Bitcoin exchange-traded funds on January 10.
According to Hayes, this correction could push Bitcoin lower to the $33,600 level and ultimately establish new support between $30,000 and $35,000.
“A 30% correction from the ETF’s approved high of $48,000 would be $33,600. Therefore, I believe Bitcoin forms support between $30,000 and $35,000,” Hayes wrote in a blog post.
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