Bitcoin Nears All-Time High; Potential $1.45B Surprise for Short Sellers Looms
Summary:
Bitcoin's price is nearing its all-time high of $73,750, with its current bullish trajectory potentially causing a $1.45 billion liquidation of short-positioned stocks if it surpasses $74,300. The number of long-leveraged positions surpasses short-leveraged ones, with traders employing a strategy of borrowing and selling Bitcoin, aiming to buy back when prices drop and profit from the price difference.
Bitcoin's value is tantalizingly close to its highest-ever recorded price, sitting just 3% shy of the $73,750 mark. Should the Bitcoin trajectory continue along this upward trend and surpass $74,300, this could trigger a $1.45 billion liquidation of short-positioned stocks, reports CoinGlass. The data analytics firm noted that the tally of long-leveraged positions in Bitcoin significantly outweighs that of short-leveraged ones. A short is a strategy where the trader borrows Bitcoin with the intent of selling it, projecting a downward swing in price. The trader's objective is to purchase the Bitcoin back at a lowered price, pay back the borrowed amount, and profit from the price difference.
Published At
5/21/2024 2:11:32 PM
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