Bitcoin’s return to $71K wipes out $1.38B of shorts
If Bitcoin (BTC) bounces back from its recent lows to its June 6 price of $71,000, more than a billion dollars worth of short positions will be executed.
On June 7, Bitcoin fell 3.33% to $68,507 before recovering slightly from the key $69,000 level.
Along with Bitcoin's price decline, Ether (ETH) also showed a 3.58% decrease in 24 hours, and several altcoins such as Solana (SOL), Dogecoin (DOGE) and Pepe (PEPE) gained 5.61%, 8.70%. , 9.99% respectively, according to CoinMarketCap data.
According to CoinGlass data, the market crash resulted in a loss of $409.51 million from short and long positions across the board. Of this, $56.71 million were long positions in Bitcoin.
However, the price of Bitcoin hovered between $70,000 and $71,662 in the two days before the drop, on June 5 and 6. Many traders were hoping for a move closer to the high of $73,679.
Traders tend to short bitcoin
Now, traders are hedging their bets that the price will not recover too quickly.
Therefore, if Bitcoin returns to $71,000, it will result in a loss of $1.38 billion in long positions, indicating that futures traders anticipate further price declines.
This comes after investors were curious as to why Bitcoin's price hasn't rebounded from its recent March highs, particularly a 19-day streak of positive inflows into Bitcoin exchange-traded funds (ETFs).
Related: Bitcoin ETF Flows Send BTC Price Into ‘Parabolic Run', Traders Say
On June 7, Cointelegraph reported that analysts pointed out that many additional factors affect the price of Bitcoin and that ETFs are not efficient enough.
“ETF flows are fantastic, but they're not strong enough to outpace the entire ecosystem[yet],” Capriole Investments founder Charles Edwards told Cointelegraph.
Meanwhile, crypto trader Christopher Inks reiterated that “the market is made up of spots, futures, ETFs and options.”
Magazine: Longevity Expert: AI Will Help Us Become ‘Biologically Immortal' By 2030
