Market Wrap: Bitcoin Tests $12K; DeFi Debt Outstanding Hits Record

Bitcoin hit $12,000 but then fell as long derivatives traders were wiped out.

Bitcoin trading around $11,884 as of 20:00 UTC. Gaining 1.8% over the previous 24 hours.

Bitcoin was able to hit as high as $12,084 on spot exchanges such as Coinbase only to quickly drop 4.5% a few hours later.

Leveraged bitcoin traders on derivatives exchange BitMEX were wiped out on the price ride up and back down.

As bitcoin's price increased, short-positioned traders lost over $2.5 million, the crypto equivalent of a margin call.

When the bitcoin price decreased, long-positioned traders lost over $8.4 million.

Vinokourov expects more short-term action in the derivatives market to affect bitcoin's price.

Bitcoin is up 30% since the start of July, and Suduiko notes an array of factors for being bitcoin bullish.

"In the context of sustained trading volume, increased signals of institutional entry and worries about the potential devaluation of the dollar, it's possible that this may represent broader interest in bitcoin's value rather than a fluke run-up in price," he said.

Ether, the second-largest cryptocurrency by market capitalization, was up Monday trading around $395 and climbing 1.2% in 24 hours as of 20:00 UTC.Ethereum-powered decentralized finance debt outstanding has hit a record Monday, crossing $1.56 billion, according to data aggregator DeFi pulse.