Thursday was a tough day for Bitcoin short-sellers, as a sharp rise in the cryptocurrency’s price resulted in over $1 billion in short positions being liquidated within a single day. Data from CoinGlass reveals that short positions worth $1.01 billion were liquidated, affecting 232,149 traders. Bitcoin (BTC) shorts accounted for approximately $570 million, and Ether (ETH) shorts made up around $206.93 million of the liquidations.
Bitcoin set a new record high for the second consecutive day, hitting $112,000 on Wednesday and $116,500 on Thursday. Ether also saw a significant surge, reaching $2,990 on Thursday. The crypto market cap increased by 4.4% within the past 24 hours, taking the total market cap to $3.63 trillion, as per CoinMarketCap data.
Crypto analyst Miles Deutscher responded to the market movement with the comment, “Bears in disbelief”. Similarly, crypto trader Daan Crypto Trades referred to the situation as a “MASSIVE Short squeeze on BTC & ETH”. Another observer, Velo, highlighted the scale of the liquidation, stating, “Lots of emails are being sent”.
Despite some analysts expressing skepticism earlier this week about Bitcoin’s potential to reach new highs, traders now seem to be betting on the price either remaining stable or rising further. According to estimates, around $2.11 billion in long positions could be at risk of liquidation if Bitcoin falls back to Wednesday’s price of $112,000.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading move comes with its own risks, hence readers are advised to conduct their own research before making a decision.
