If Bitcoin (BTC) rebounds quickly from its recent decline to the June 6 price

If Bitcoin (BTC) rebounds quickly from its recent decline to the price of $71,000 on June 6, more than $1 billion in short positions will be liquidated.

On June 7, Bitcoin fell 3.33% to $68,507 before rebounding slightly above its key level of $69,000, amid broader macroeconomic uncertainty stemming from the situation summary report in the United States, which revealed better-than-expected job growth during the month of May.

Along with Bitcoin’s price decline, Ethereum (ETH) also saw a 3.58% 24-hour decline, and several altcoins such as Solana (SOL), Dogecoin (DOGE), and PEPE (PEPE) saw declines. of 5.61% and 8.70. %. By 9.99%, respectively, according to data from CoinMarketCap.

The market decline wiped out $409.51 million in short and long positions across the board, according to CoinGlass data. Of this amount, $56.71 million were long Bitcoin positions.

If Bitcoin returns to $71,000, approximately $1.38 billion in short positions will be liquidated. Source: Coinglass

However, the two days before the Bitcoin price crash, June 5 and 6, its price was between $70,000 and $71,662. Many traders were hoping that the price would approach the all-time high of $73,679.

Traders Are Heavily Slanted Toward Shorting Bitcoin

Now, traders are hedging their bets that its price may not rebound as quickly.

So much so that if Bitcoin returns to $71,000, it will wipe out $1.38 billion in long positions, indicating that futures traders are expecting further price declines.

Source: Willie Wu

This comes after investors questioned why the Bitcoin price hasn’t recently surpassed its all-time highs in March, especially in light of the 19-day streak of positive flows into Bitcoin exchange-traded funds (ETFs). .

about: Traders say Bitcoin ETF inflows will send the price of Bitcoin on a “parabolic path.”

On June 7, Cointelegraph reported that analysts noted that too many other factors were affecting the price of Bitcoin and that ETFs did not have enough leverage.

“ETF flows are strong, but they are not strong enough to outpace the sell-off of the entire ecosystem (yet),” Charles Edwards, founder of Capriole Investments, told Cointelegraph.

Meanwhile, cryptocurrency trader Christopher Enckes pointed out that “the market consists of spot contracts, futures, ETFs and options.”

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