Happycoin.club - Cryptocurrency traders bet $1.67 billion that Bitcoin will not rise to $70,000 in the near future.
According to research company CoinGlass, if the price of Bitcoin rises to $70,000, short positions worth $1.67 billion will be liquidated. Thus, traders predicting a decline in the price of the asset will have to spend $1.67 billion to repay loans and not go broke. Bitcoin currently costs $65,445, meaning the coin only needs to rise 7% to reach $70,000.
The markets are in a bullish mood. The amount of open positions for the sale of Bitcoin and Ethereum that can be liquidated is growing. A rebound is inevitable,” wrote Joshua Jake, director of the Discover Crypto portal.
The current situation in the Bitcoin market may cause a short squeeze, a phenomenon in which there is a rapid increase in the value of an asset due to the closing of a large number of short positions. When traders who bet on the BTC price falling realize their mistake, they may begin to buy coins en masse, thus increasing demand for the cryptocurrency.
The start of a bullish rally is also indicated by the fact that since the beginning of 2024, open interest in the Bitcoin futures market has increased by 82% and amounts to $33.55 billion. This means an increase in the amount of outstanding contracts and indicates an increase in the demand for BTC-based derivatives.
