The price of bitcoin has increased by over 11% in the past seven days — but recent price volatility has caused a spike in liquidations.

According to Bitfinex Head of Derivatives Jag Kooner, bitcoin's value appreciation over the past week has been driven by spot market traders. "The majority of buying has come from spot takers, meaning market orders by aggressive buyers in the spot markets," Kooner told The Block.

Last Monday, the price of bitcoin hovered just above the $42,000 mark; however, since then, most liquidated leveraged positions have been short, according to Kooner. "As the price has increased over the past seven days, it caused a large amount of short liquidations, and this has further propelled the price upwards," he added.

The fluctuating price action in the past …