#TrendingTopic The Futures Market and Bitcoin

According to data from the crypto data platform CoinGlass, $161 million worth of Bitcoin short positions were liquidated in just 24 hours on February 27th. When Bitcoin briefly reached $57,000, short positions were liquidated, resulting in a total loss of $268 million. Since then, Bitcoin’s price has not fallen and has finally risen above the $69,000 level.

When short positions are liquidated, investors who bet on Bitcoin’s price drop usually have to buy back the Bitcoin they sold at a higher price to close their positions. This sudden increase in buying pressure can lead to a rapid rise in Bitcoin’s price.

Short sales can trigger a gradual effect known as a short squeeze, where those who shorted rush to buy back Bitcoin to close their positions, further driving up Bitcoin’s price. This phenomenon can intensify price movements and lead to significant volatility in the Bitcoin market.