Analyst ZeroHedge has reported a dramatic increase in Bitcoin hedge fund net shorts, reaching an all-time high. Things could get worse if BTC price loses the key support at $68,500.
The world’s largest cryptocurrency Bitcoin (BTC) and the broader cryptocurrency market have come under strong selling pressure with the BTC price losing support at $71,000 and falling all the way to $68,500. As of press time, Bitcoin (BTC) is trading at $69,404.43 with a market cap of $1.37 trillion.
Bitcoin hedge funds net shorts at record highs
Analyst Zerohedge has reported a substantial increase in Bitcoin hedge fund net shorts, reaching a new record high.
ZeroHedge commented, “Big jump in bitcoin hedge fund net shorts and a new record high. When it breaks, it will make Volkswagen/GME look like hobbyist hours.”
This increase in net shorts indicates extreme bearish sentiment among hedge funds, suggesting the potential for significant market volatility if these positions are forced to unwind. The situation parallels historical short squeezes, such as those seen with Volkswagen and GameStop ( GME ), which means that a similarly dramatic shift could occur in the bitcoin market.
Bitcoin and the rest of the crypto market crashed as the meme stock rally ended. On Friday, GameStop (NYSE: GME ) shares dropped a whopping 41% as Roaring Kitty went live.
Will the price of BTC be more accurate?
Crypto analyst Ali Martinez has identified an important support level for Bitcoin, emphasizing its importance to the cryptocurrency’s future trajectory.
“The most important support level for Bitcoin is now at $68,500! If BTC holds this level, it’s only from here,” said Martinez. According to Martinez, holding the $68,500 support level is crucial for Bitcoin’s continued upward movement.