Bitcoin has temporarily surpassed $11,400, peaking since September 2019. Later, the cryptocurrency dropped to $10,600.

Bitcoin jumped to $11,400 on Tuesday night. This is the highest cryptocurrency price level since September 2019. Due to the sharp jump in the bitcoin rate, there was a forced closing of short positions on several cryptocurrency markets. Shortists who expected bitcoin to decrease lost about $522 million in cryptocurrency as a result of the margin calls triggered, analysts of Coinalyze calculated.

Most of the traders who bet on bitcoin decline held short positions on Binance and BitMex. Positions on Binance and BitMex worth $126 million and $124 million were liquidated that night, respectively. $90-$100 million of short positions were liquidated on Huobi, Bybit, and Bitfinex.

As of July 28, bitcoin is trading at $10,650, and its capitalization exceeded $196 billion with a total emission of 18.4 million coins.

The rise in bitcoin price coincided with the growth in price of traditional safe assets such as gold. Investors are showing concern about the future of the global economy and are withdrawing funds from riskier assets. Although cryptocurrencies are highly volatile, bitcoin is often called digital gold and is marked as a limited issue, unlike fiat currencies, the additional issue of which is often used to stimulate the economy, which leads to higher inflation rate.

Furthermore, last week, the US Foreign Exchange Office said US banks would be able to provide custody services for cryptoassets, which could help increase the attractiveness of the asset class for some investors.