📊 Bitcoin’s climb to $70k could trigger $1.6 billion in short liquidations

The cryptocurrency market is experiencing increased fluctuations as #Bitcoin inches closer to a psychological threshold of $70,000. With rising prices comes the possibility of market shifts. According to a recent tweet from prominent market watcher Ash Crypto, “$1,600,000,000 worth of shorts will get liquidated if Bitcoin hits $70,000.”

🔸 Short sellers face pressure as Bitcoin’s surge threatens $1.6 billion in liquidations

Short sellers borrow #BTC to sell at a higher price, expecting it to drop in value so they can repurchase it at a lower price and pocket the difference. However, if the price continues to rise, they face losses and are often forced to buy back their positions to prevent further damage. This phenomenon is known as a short squeeze.

The recent tweet’s estimate of $1.6 billion in liquidations is quite remarkable.” Liquidations happen when short positions are automatically closed because of insufficient collateral, usually caused by price changes taking place. As the price of Bitcoin goes up, those who have taken short positions might need to close their trades by purchasing BTC at higher values. This buying pressure results in price escalation, establishing a cycle of continual upward movement.

Bitcoin led the liquidations rank, with $307.58k, of which $125.34k million were liquidated long positions and $182.24k were short positions. Notably, Bitcoin’s open interest (OI) has dropped by more than $1.2 billion in the past few hours.

Hamster Kombat follows BTC closely with over $243.80k in liquidations, with long and short liquidations accounting for $115.80k and $128.01k, respectively.

Past short liquidations signal heightened volatility as BTC nears a $70k surge

Bitcoin has a past filled with examples of massive short liquidations occurring during previous market upswings when sudden price surges lead to the liquidation of billions of short positions, wiping them out in just hours.