Bitcoin short sellers are out $161M as they are surprised by an 11% rally.
Bitcoin (BTC) rallied 11 percent to briefly hit a new annual high of $57,000, with bitcoin short sellers paring losses of millions.
According to data from crypto data platform CoinGlass, more than $161 million worth of BTC shorts have been mined in the past 24 hours. Traders seeking short-term exposure to Ether (ETH) fared no better, with liquidity reaching $44 million over the same period. Bitcoin briefly touched $57,000, leaving over $268 million in short positions.
More than $270 million in short positions have been eroded in total as the market moves higher.
The broader market rose 10.8% to $57,035 from $51,471 in TradingView data, led by a sharp increase in prices on TradingView. Bitcoin has cooled and is changing hands at $56,000, despite a 32% gain over the past month.
SwiftX lead analyst Pav Hundal described the crypto market as “on fire right now” in a statement to Cointelegraph.
“We are at an average per-person trading volume in retail that we last saw in the last bull run in November 2021, plus institutional buying pressure is very high,” he said.
Hundall, like many others, has noted the large amount of institutional capital flowing into the recently approved Bitcoin exchange-traded funds (ETFs) in the United States.
Net inflows to the top 10 Bitcoin ETFs added $515 million on February 26, one of the highest inflow days since their January 11 adoption, according to Farside data.
“Traded funds alone cannibalize nearly a quarter of the Bitcoin currently being mined on the network,” Hundal added.
Hundred wasn't alone in his enthusiasm for Bitcoin's value moving forward, with several market analysts throwing their weight behind the asset on social media platform X.
Tyler Winklevoss, co-founder of US-based crypto exchange Gemini, said, “We're back!” He briefly presented. Apparently BTC bull Dan Held said today's price action is “the start of a Bitcoin bull run.”
Welcome to the beginning of the Bitcoin bull run.
Be prepared for many sleepless nights
— Dan Held (@danheld) February 27, 2024
Magazine: ‘Crypto Is Inevitable' So We're ‘All In' – Meet Vance Spencer, Permabul
