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Bitcoin short sellers have taken a hit over the past two days. This is according to data presented by crypto derivatives analysis website coinglass.com, which shows that about $100 million worth of future short positions in bitcoin have been liquidated across major exchanges in the last two sessions, and during that time Bitcoin is up a staggering 8.5%.
At the current $24,100 level, Bitcoin is trading just 13% below its monthly low in the low $21,000s. Last week, a bearish call for Bitcoin to return to his $20,000 level was finally proven false, and instead Bitcoin hit its highest level since June 2022 on Thursday. Some recorded his $25,270. The news that two of Mt Gox’s biggest creditors will receive most of their payments in his BTC instead of fiat currency fueled Thursday’s surge.
Mt Gox was one of the early Bitcoin exchanges, but a hack in 2014 resulted in the loss of most of the funds and the exchange was shut down. However, the Mt. Gox-assisted intraday rally was short-lived, with short-term bullish speculation betting on a push to the high $25,000s, as evidenced by a surge in liquidation of long positions on Thursday. It looks like you caught the house.
About $35 million worth of long positions were liquidated on Thursday, according to coinglass.com, after about $5 million of long positions were liquidated on Wednesday. Taking profits on the recent rally and stop-runs from those who were overly aggressively chasing the upside could push BTC below his $24,000 level.
Bull market dominates in the short term
However, the recent rebound from previous weekly lows means Bitcoin is still up about 45% this year. The bulls still hold the lead despite the rise in US dollar and US Treasury yields in recent weeks releases.
Some analysts say Bitcoin performed so well in 2023 because it oversold following the collapse of FTX last year. However, some say Bitcoin is doing well as we see the end of the rate hike cycle and a better macro environment. For others, the worst of the 2022 bear market is now behind us.
Upside risk remains despite the advent of macro risks
Traders monitor US flash service PMI data, GDP figures, core PCE inflation data release and next week’s Fed’s latest meeting minutes, while macro traders monitor US growth, inflation and monetary policy outlook To do. However, Bitcoin and the broader cryptocurrency market are very resilient to what is usually interpreted as macro headwinds.
Price risk may be trending upwards in the short term, but to be fair, this is not a message sent from the Bitcoin options market. The Bitcoin 25% delta skew for options expiring in days, 90 days and 180 days are all currently near zero, suggesting that investors are placing roughly equal premiums on their respective put and call options. increase.