Bitcoin's Potential Bounce Back Could Liquidate Over $1bn in Short Positions
Summary:
Bitcoin (BTC) could trigger over a billion dollars in short position liquidations if it recovers swiftly from its recent slump to $71,000. The cryptocurrency fell 3.33% on June 7, due to uncertain macroeconomic conditions linked to the US Employment Situation Summary Report. Other cryptocurrencies, including Ether (ETH) and altcoins such as Solana (SOL), Dogecoin (DOGE), and Pepe (PEPE), also suffered losses. CoinGlass data shows that $409.51 million of short and long positions were wiped out. A resurgence of Bitcoin to $71,000 could result in an estimated $1.38 billion in short positions being liquidated.
Bitcoin (BTC) could cause more than one billion dollars in short positions to be liquidated if it bounces back swiftly from its recent tumble to the price it had on June 6, which was $71,000. On June 7, the renowned cryptocurrency fell 3.33% to $68,507 but saw a minor recovery back above the substantial $69,000 mark, this was in response to uncertain macroeconomic conditions instigated by the US Employment Situation Summary Report. This demonstrated greater-than-anticipated job expansion in May. Parallel to Bitcoin's falling value, Ether (ETH) also experienced a drop of 3.58% in the same 24 hour period, and additional altcoins such as Solana (SOL), Dogecoin (DOGE), and Pepe (PEPE) suffered declines of 5.61%, 8.70%, 9.99% respectively, as shown by CoinMarketCap data. The market downturn resulted in $409.51 million of both short and long positions being wiped out, as reported by CoinGlass data. Of this total, $56.71 million were expansive positions in Bitcoin. If Bitcoin ascends back to $71,000, an estimated $1.38 billion in short positions are set to be liquidated, according to CoinGlass. However, during the two days before the drop in price, June 5 and 6, Bitcoin fluctuated between $70,000 and $71,662. Numerous traders maintained hope that it would near its record high of $73,679. If Bitcoin progresses back to $71,000, this would lead to $1.38 billion in extensive positions being liquidated, as futures traders predict further price declines. This information comes following queries from investors about why the price of Bitcoin hasn't surpassed its March record highs recently, particularly considering the 19 consecutive days of positive inflow into Bitcoin exchange-traded funds (ETFs). On June 7, Cointelegraph reported that numerous analysts suggested numerous additional factors influence Bitcoin's price and that the ETFs do not have sufficient influence. Capriole Investments founder, Charles Edwards, conveyed to Cointelegraph that "ETF flows are fantastic, but they are not strong enough to exceed the entire ecosystem selling (yet)". In addition, cryptocurrency trader Christopher Inks stated that "The market is made up of spot, futures, ETFs, and options".
Published At
6/8/2024 10:55:52 AM
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