If Bitcoin rebounds swiftly from its recent dip to $71,000 on June 6, over a billion dollars worth of short positions will be liquidated.
On June 7, Bitcoin fell by 3.33% to $68,507 before slightly recovering above the crucial $69,000 level.
This decline occurred amid broader macroeconomic uncertainty following the United States Employment Situation Summary Report, which revealed higher-than-expected job growth in May.
In addition to Bitcoin’s drop, Ether also fell by 3.58% over 24 hours, while several altcoins like Solana, Dogecoin, and Pepe experienced significant declines of 5.61%, 8.70%, and 9.99%, respectively, according to CoinMarketCap data.
This market plunge resulted in a $409.51 million liquidation of both short and long positions across the board, based on CoinGlass data, with $56.71 million being long positions in Bitcoin.
However, just two days before this price decline, on June 5 and 6, Bitcoin was trading between $70,000 and $71,662.
Many traders were optimistic that it might inch closer to its all-time high of $73,679.
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Currently, traders are betting that Bitcoin’s price may not rebound quickly.
If Bitcoin returns to $71,000, $1.38 billion in long positions will be wiped out, indicating that futures traders expect further price declines.
This comes as investors question why Bitcoin’s price hasn’t surpassed its March all-time highs, despite a 19-day streak of positive inflows into Bitcoin exchange-traded funds (ETFs).
On June 7, Cointelegraph reported that analysts highlighted the impact of multiple factors on Bitcoin’s price, noting that ETFs alone do not have enough influence.
“ETF flows are fantastic, but they are not strong enough to exceed the entire ecosystem selling (yet),” Capriole Investments founder Charles Edwards told Cointelegraph.
Crypto trader Christopher Inks also emphasized that “the market is made up of spot, futures, ETFs, and options.”
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