Bitcoin Shorts Get Squeezed: $79 Million Liquidated in 24 Hours!

Sentiment: Positive

In the ever-evolving landscape of crypto, Bitcoin, the undisputed king, continues to reign supreme as its price skyrockets above $51,000. The current bull run not only crowns winners but also casts a spotlight on the short sellers who find themselves on the losing side, with over $79 million in Bitcoin short positions liquidated in the last 24 hours.

Data delivers a sobering reality for short sellers, with an astonishing $147 million liquidated across all cryptocurrencies in the same period. Derivative contracts, which essentially bet against an asset's price, turned sour for many as Bitcoin defied expectations and surged higher.

Influx of Capital and the Role of Bitcoin ETFs

The recent surge in Bitcoin's price can be attributed to a significant influx of capital into large crypto investment products. Notably, the 10 Bitcoin ETFs that received approval from the US Securities and Exchange Commission in January are playing a crucial role. These ETFs allow investors exposure to Bitcoin without direct ownership, and the resulting inflow has undeniably fueled the ongoing price surge.

Adding to the excitement is the upcoming Bitcoin halving, scheduled for April 20th or 21st, according to predictions citing Blockchair data. This event, occurring every four years, reduces the number of new Bitcoins entering circulation by half. Historical trends indicate that Bitcoin's price tends to increase following a halving, intensifying the anticipation surrounding this event.

A Comeback Tale: Despite the Dip, Signs of Recovery

Despite Bitcoin being down 25% from its November 2021 all-time high of $69,044, recent indicators suggest a potential comeback. With a 6% daily gain and a 20% weekly increase, Bitcoin is showing resilience, leaving enthusiasts and investors optimistic about its future trajectory.

As the crypto market remains dynamic and unpredictable, all eyes are on Bitcoin. Could April 20th be the day Bitcoin breaks the $69,000 barrier? Only time will unveil the mysteries of the volatile crypto market, but one thing is certain: the bulls are roaring, and the shorts are feeling the heat.

About the Author

Ex-crypto miner and crypto enthusiast since 2019.

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