Bitcoin Shorters are going bankrupt
Bitcoin brought a surprise to the short sellers with its current rally, which resulted in $180 million worth of liquidations. BTC surpassed its previous all-time high of $73,679 last recorded in March 2023, reaching an unprecedented $75,000 on Coinbase, Binance and several exchanges.
The new record highlights an inflection point for the crypto market, driven primarily by spot rather than derivative demand, as analysts and traders say that this may be the onset of a renewed “crypto summer.”
Heavy Losses for Short Sellers
More than $179.1 million worth of Bitcoin short positions were liquidated in a four-hour period, which demonstrates the strength of the rally.
Bitcoin shorts formed $251 million of the total crypto market liquidations, which rose to a whopping $483.2 million in the last 24 hours.
Short sellers in Dogecoin fell not far behind, with $47 million worth of losses.
Pav Hundal, lead analyst at crypto exchange Swftyx, said the momentum for BTC is mostly spot-driven. Hundal wrote,
The spot market is flying and shorts are getting rekt.
According to Swftyx’s aggregate order books, this buy action is reportedly almost universal, which goes on to demonstrate the bullish sentiment in the market.
Effect of U.S. Election Volatility
The uncertainty surrounding the US presidential election has also led to erratic market volatility.
As Nick Forster, founder of the on-chain options DeFi protocol Derive, noted,
“Election-related volatility has peaked, but short-dated volatility expectations are still high.”
BTC is highly speculative right now, and the market already implies fluctuations of 4–5% daily as results come in from the election. However, pundits think Donald Trump winning a second term could mean additional upside for Bitcoin as the president presides over quite arguably one of the most crypto-friendly administrations in history.
Will Bitcoin Reach $100,000?
Many analysts are calling Bitcoin’s rally the first leg in a larger move higher.
Markus Thielen, head of research at 10x Research, suggests that under the premise of continuous trends in macroenvironment and structural change,
“Bitcoin could ‘potentially’ achieve $100,000 by Q1 2025.”
– Markus Thielen (Head of Research, 10x Research)
Be that as it may, options market still sees a 15% chance that Bitcoin ends up crossing Benjamins to over $100,000 by this year-end, which indicates that the investors are quite optimistic about BTC movement as per Derives’ Forster.
Even though there is the potential for short-term corrections, particularly with U.S. trading impacts and continuous election developments, the crypto community appears to be bullish.
All in all, Bitcoin now stands at $75,000 as short sellers get liquidated and converse about how far this one can go. With Bitcoin shorts liquidated to the tune of $251 million and predictions for the market suggesting a bounce to $100,000 one day, Bitcoin’s fate remains amongst finance’s most talked about stories.
