Bitcoin Price Recovery Breaks $100 Million in Crypto Shorts

Bitcoin It's back again – and those who gamble on property values ​​will suffer.

Over the past 24 hours, nearly $100 million worth of short positions have been liquidated across all cryptocurrencies, CoinGlass data shows, with more than $99 million in cash now.

Most of that figure was betting on the largest cryptocurrency by market capitalization, with nearly $36 million in short BTC positions in 24 hours. Almost $22 million worth of BTC shorts evaporated in the last four hours alone.

Long positions saw losses the previous day, although traders behind the shorts felt more pain. According to CoinGlass data, about $44 million worth of long positions were liquidated across all cryptocurrencies in the last 24 hours.

Short positions are held by traders who sell futures of falling asset prices. If a short is liquidated, the trader loses the bet and their position is closed. Conversely, long positions are bets that the value of an asset will increase.

of The price of Bitcoin According to CoinGecko, it is trading at $61,911, up nearly 5% in the last 24 hours. It briefly popped above the $62,000 mark on Friday morning. The asset has been struggling in recent days, and fell below $57,000 a penny at one point this week.

That's nearly $74,000 below Bitcoin's new March all-time high. That's even lower than the previous record of $69,044 in 2021.

Bitcoin and the broader crypto market suffered after the Federal Reserve said it was in no rush to cut interest rates this week.

Other geopolitical factors, such as conflict in the Middle East, have made “risky” assets like bitcoin less attractive to investors, prompting the departure of Bitcoin exchange-traded funds (ETFs) from the newly permitted space.

But today, the US government's non-farm payrolls report showed that the unemployment rate in April was better than expected.

This has been interpreted as bullish by some crypto traders: high unemployment could prompt the Fed to consider lowering interest rates, and lower interest rates could mean crypto is more attractive to investors.

Edited by Andrew Hayward.