If Bitcoin returns to $71,000, $1.38 billion in shorts will disappear.
If Bitcoin rebounds quickly from its recent decline to $71,000 on June 6, more than $1 billion in short positions will be liquidated.
On June 7, Bitcoin (BTC) fell 3.33% to $68,507 before falling to a key level of $69,000 amid widespread macroeconomic uncertainty triggered by the U.S. Employment Situation Summary report revealing more-than-expected job gains in May. It recovered slightly over the dollar.
Along with the decline in Bitcoin price, Ethereum (ETH) also fell by 3.58% in 24 hours, and several altcoins such as Solana (SOL), Dogecoin (DOGE), and Pepe (PEPE) also recorded a decline of 5.61% and 8.70. . % and 9.99% respectively, according to CoinMarketCap data.
Overall, the market crash resulted in losses of $409.51 million in short and long positions, according to CoinGlass data. Of that amount, $56.71 million was in Bitcoin long positions.
However, on June 5 and 6, two days before the Bitcoin price decline, it hovered between $70,000 and $71,662. Many traders were hoping that it could get a little closer to the all-time high of $73,679.
Traders are leaning heavily toward selling Bitcoin.
Now traders are betting that prices may not rebound as quickly.
If Bitcoin returns to $71,000, $1.38 billion in long positions will be liquidated, indicating that futures traders are expecting further price declines.
This comes as investors wondered why the price of Bitcoin was unable to surpass its recent all-time high in March. This is especially true considering that Bitcoin exchange-traded funds (ETFs) have seen positive inflows for 19 consecutive days.
Related: Bitcoin ETF Flows Will Send BTC Price ‘Parabolic Run’, Traders Say.
On June 7, Cointelegraph reported that analysts have pointed out that there are more factors affecting the price of Bitcoin and that ETFs do not have enough influence.
“ETF flows are fantastic, but not strong enough to exceed overall ecosystem sales (yet),” Charles Edwards, founder of Capriole Investments, told Cointelegraph.
Meanwhile, cryptocurrency trader Christopher Inks repeatedly emphasized that “the market consists of spot, futures, ETFs, and options.”
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