Bitcoin Short Sellers Lose $150 Million – Could Be Sign of “Big Rally”
Bitcoin’s price rise has shaken leveraged bearish bets.
Analysts say Bitcoin is poised to enter a new bull market and rise before mining rewards are halved.
Leveraged short bets on Bitcoin (BTC) lost more than $150 million (about 22.5 billion yen, 150 yen = 1 dollar) in the last 24 hours. BTC prices rose 10%, the largest daily increase since October, raising expectations of a new bull market.
BTC temporarily exceeded the $57,000 level on February 27, thanks to several catalysts such as increased Bitcoin Exchange Traded Fund (ETF) trading volume and institutional investor purchases, and in November 2021, the price reached the $57,000 level. It then hit its highest price. March.
Short-term liquidation may be contributing to Bitcoin’s rise this week. More than $180 million has been lost in short-term bets since Sunday, according to data from Coinglass. Still, outstanding interest jumped from $48 billion to nearly $54 billion, indicating an increase in bullish bets as traders anticipate volatility. .
Liquidation means that the exchange is forced to close a trader’s leveraged position due to loss of some or all of the trader’s initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position (not having enough funds to continue trading).
Large liquidations can indicate steep price swing peaks or troughs, allowing traders to take positions accordingly.
The rapid rise in the price of Bitcoin has revitalized the entire cryptocurrency asset market. Ethereum (ETH), Solana (SOL), and Cardano (ADA) are up 8% in the last 24 hours, while Bitcoin’s layer 2 token, Stacks (STX), has surged more than 25%.
Market observers say Bitcoin has clearly entered a “new bull market” and could see a significant rebound as the halving, expected in April, approaches.
“Bitcoin’s clear rally effectively signals the beginning of a new bull market,” Alex Adelman, CEO of Bitcoin redemption app Lolli, said in an email to CoinDesk. . “The large price movement was driven by very positive market sentiment and continued inflows into the Bitcoin ETF, which hit a new daily high today.”
“With just over a month left until the Bitcoin halving, which has historically led to price increases, there is tremendous upside for Bitcoin going forward,” Adelman added.
Halving is a program that reduces inflationary pressures on Bitcoin by halving the reward for successfully mining a Bitcoin block. This makes it more difficult to acquire and mine new Bitcoin, which has historically led to bull markets.
｜Translation: CoinDesk JAPAN ｜Editor: Toshihiko Inoue ｜Image: Shutterstock ｜Original article: Bitcoin short sellers lose $150 million as BTC anticipates ‘huge uptrend’
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