[Bitcoin’s return to 71,000 will eliminate 1.38 billion shorts]
If Bitcoin can quickly rebound from its recent decline to its June 6 price of $71,000, more than a billion dollars in short positions will be liquidated.
On June 7, Bitcoin fell 3.33% to $68,507 before recovering slightly above the key $69,000 level, which came amid broader economic uncertainty in the U.S. jobs report. The report showed job growth in May exceeded expectations.
As Bitcoin prices fell, Ethereum also fell by 3.58% in 24 hours, and several other altcoins such as Solana, Dogecoin, and Pepe lost 5.61%, 8.70%, and 9.99% respectively, according to CoinMarketCap data.
According to data from CoinGlass, the market rout resulted in a combined loss of $409.51 million for long and short positions, including $56.71 million for long Bitcoin positions.
However, two days before the price drop, on June 5 and 6, the price of Bitcoin fluctuated between $70,000 and $71,662. Many traders hope it gets closer to its all-time high of $73,679.
Now, traders are betting that Bitcoin prices may not rebound quickly.
If Bitcoin rallied back to $71,000, $1.38 billion in long positions would be liquidated, suggesting futures traders expect further price declines.
This comes as investors wonder why Bitcoin prices have recently failed to surpass its March all-time high, especially given 19 consecutive days of positive inflows into Bitcoin exchange-traded funds (ETFs).
On June 7, Cointelegraph reported that analysts pointed out that there are many factors that affect the price of Bitcoin, and the influence of ETFs is not strong enough.
“ETF flows are good, but they are not enough to outweigh the sell-off across the ecosystem (yet),” Charles Edwards, founder of Capriole Investments, told Cointelegraph.
Meanwhile, cryptocurrency trader Christopher Inks reiterated that “the market is made up of spot, futures, ETFs and options.”
