$635M Liquidated in 24 Hours as Traders Anticipate Bitcoin Short Squeeze
Crypto markets suffered $635.9 million in liquidations, mainly from short positions, particularly Bitcoin and Ether. Despite rising prices, experts caution that reaching $100,000 for Bitcoin may not be imminent, with significant macroeconomic factors at play. The potential for a short squeeze is highlighted, but market sentiment remains uncertain.
In the past 24 hours, crypto markets have experienced significant volatility, with liquidations totalling $635.9 million. The bulk of these losses, exceeding $560 million, originated from short positions, suggesting intense pressure on bearish traders. Bitcoin (BTC) was predominantly affected, with $293 million in short positions liquidated as it rose above $94,000, achieving a daily gain of 6.29%.
Ether (ETH) also experienced notable short liquidations, exceeding $109 million, as its price increased nearly 10% to reach $1,787. Data from various exchanges indicate that Binance recorded the highest liquidation volume at $18.7 million within a span of four hours, with 77.58% of this amount affecting short positions. Additionally, exchanges like Bybit and OKX reflected similar trends in liquidation volumes.
Amid this market turbulence, crypto analyst Mister Crypto reported that significant liquidity is accumulating around the $100,000 mark for Bitcoin. His analysis indicated that the desperation among bearish traders suggests a possible short squeeze that could propel BTC towards this milestone. A short squeeze occurs when rising prices compel traders holding short positions to close their trades, further driving the price upwards.
Mister Crypto also presented a Binance BTC/USDT Liquidation Heatmap, indicating that considerable trading activity and liquidation orders are concentrated around the $100,000 level. Bitcoin recently rose to a 45-day high, surpassing $94,000, currently trading at $94,236, displaying a more than 6% increase over 24 hours.
Despite the bullish trends, not all analysts share the view that Bitcoin will reach $100,000 swiftly. Vincent Liu, chief investment officer at Kronos Research, highlighted ongoing uncertainties. He noted that the outcome of the May 6 FOMC meeting, trade negotiations, and macroeconomic conditions could significantly influence Bitcoin’s trajectory. Furthermore, he indicated that favourable monetary policies, including potential rate cuts, could fuel momentum, while adverse conditions may restrain BTC’s price movements.
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