Bitcoin’s rebound to $71K would erase shorts of $1.38 billion

  • Many short positions would be eliminated if Bitcoin were to bounce back to the level it was trading at for the previous two days, prior to the minor decline.

In the event that Bitcoin swiftly recovers from its current decline to its June 6 price of $71,000, short positions worth over $1 billion will be closed.

The United States Employment Situation Summary Report, which showed higher-than-expected job creation in May, caused broader macroeconomic anxiety, causing Bitcoin (BTC) to fall 3.33% to $68,507 on June 7 before marginally recovering above its crucial threshold of $69,000.

According to CoinMarketCap data, the price of various altcoins, including Solana (SOL), Dogecoin (DOGE), and Pepe (PEPE), dropped by 5.61%, 8.70%, and 9.99%, respectively, over the course of the day. Ether (ETH) also saw a loss of 3.58%.

According to CoinGlass statistics, the market collapse caused short and long bets to be liquidated for a total of $409.51 million. $56.71 million of those were long Bitcoin positions.

But on June 5 and 6, two days before to its downturn, the price of Bitcoin was trading between $70,000 and $71,662. A lot of traders thought it may get a little bit closer to its peak of $73,679.

Traders seem to favor shorting Bitcoin significantly.

Traders are now hedging their bets in case the price doesn’t rise as swiftly.

In fact, $1.38 billion in long positions will be lost if Bitcoin drops back to $71,000, suggesting that futures traders expect more price decreases.

This is in response to investor curiosity about why the price of Bitcoin hasn’t recently risen above its all-time highs from March, particularly in light of the 19-day run of positive inflows into Bitcoin exchange-traded funds (ETFs).

Analysts said that a lot more things affect Bitcoin’s price than only the ETFs, according to a June 7 Cointelegraph report.

Charles Edwards, the founder of Capriole Investments said that while ETF flows are great, they are not yet strong enough to outpace ecosystem selling.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Lalit Mohan

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