Bitcoin price breaks through $58,000, 90,000 people lose 4.3 billion in 24 hours! Will the huge bubble burst?

The price of bitcoin rose above $58,000 a coin for the first time since February 22, approaching the record high set last month.

Data from Bitcoin Home Network shows that in the last hour, nearly 159 million yuan (RMB (6.4938, -0.0117, -0.18%), the same below) of funds have been liquidated, and the amount of liquidation in the past 24 hours has exceeded 4.3 billion yuan, with more than 91,000 people having their positions liquidated.

Bitcoin hit an all-time high of $58,350 on February 21 before plummeting. U.S. President Biden signed a $1.9 trillion pandemic relief bill on Thursday, boosting optimism in financial markets.

“Bitcoin has shown legendary resilience,” said Antoni Trenchev, managing partner and co-founder of London-based cryptocurrency lender Nexo. “Every pullback is an opportunity to rise again.”

Bitcoin has risen more than six-fold in the past year amid growing institutional interest. Advocates see the cryptocurrency as a store of value similar to gold that can hedge against inflation and a weak dollar. Others believe that Bitcoin's surge is just a huge bubble fueled by economic stimulus measures and will eventually burst like the 2017-2018 boom and bust cycle.