Millions of Bitcoin shorts were liquidated as Bitcoin rebounded.
Bitcoin Shorts Take Massive Losses as Price Soars
Bitcoin shorts, or investors who bet that the price of Bitcoin will decline, are losing a lot of money as the price of Bitcoin continues to rise.
As of writing, the value of Bitcoin is sitting at $2,471.93, which is a gain of more than 16% over the last 24 hours. This has caused the value of all Bitcoin shorts to lose a total of $21.5 million.
This is the largest loss that Bitcoin shorts have suffered since the start of 2018.
Why are Bitcoin shorts losing money?
Bitcoin shorts are typically betting that the price of Bitcoin will decline. As the price of Bitcoin continues to rise, this means that the value of the Bitcoin shorts' investments are decreasing.
This is because when the price of Bitcoin rises, it becomes harder for the shorts to cover their positions. This is because the value of the Bitcoin short position is based on the value of Bitcoin, not on the value of the underlying asset.
This means that as the price of Bitcoin rises, the value of the short position becomes smaller and smaller. As a result, the shorts are forced to sell their Bitcoin at a higher price, which causes them to lose money.
Bitcoin Bears Suffer as Market Reacts Positively to Price Increase
The bitcoin price increased by 3.6% on Wednesday, in reaction to increasing demand and news that Japan is considering legalizing bitcoin as a method of payment. However, some bitcoin bears are pointing out that the market is not pricing in the potential for a bitcoin bubble.
Bitcoin Shorts Forced to Cover After Price Surge
Bitcoin shorts were forced to cover their positions after the bitcoin price surged on Thursday.
The CME Group announced on Thursday that it would begin trading bitcoin futures contracts. This caused the price of bitcoin to surge, as short sellers were forced to cover their positions.
The CME Group’s move caused the short squeeze, as many short sellers were forced to sell their bitcoins in order to cover their positions. This caused the bitcoin price to surge even higher.
The short squeeze has caused the price of bitcoin to rise by more than $600 since the beginning of the month.
Huge Short Positions Wiped Out As Bitcoin Keeps Climbing
Bitcoin prices are continuing to surge higher, and as a result, huge short positions in the cryptocurrency are being eliminated. Bitfinex, one of the world’s largest exchanges, reported that it has eliminated short positions worth $400 million in Bitcoin and Ethereum.
This is a sign that investors are beginning to believe in Bitcoin’s long-term potential, and it is likely that this trend will continue as the cryptocurrency continues to rise in value.
Bitcoin has surged more than 20% in the past week, and it is currently trading at $5,500. This is a significant increase from its price of $4,000 just a few weeks ago.
This surge in value has caused many other cryptocurrencies to follow suit. Bitcoin Cash, Ethereum Classic, and Litecoin all saw significant increases in value over the past week.
Bitcoin is still a relatively new technology, and there are still a lot of questions about its long-term viability. However, the fact that it is continuing to surge in value suggests that there is a lot of investor interest in this cryptocurrency.
Bulls Win Big as Bitcoin Rebounds and Bearish Investors Lose Millions
Bitcoin prices rose more than 10% on Sunday, as traders reacted to news that the Securities and Exchange Commission (SEC) has decided not to pursue a case against Barry Silbert’s Digital Currency Group (DCG) over its $450 million investment in Bitfinex.
At press time, Bitcoin was trading at $7,564.14, up from $7,202.06 on Saturday.
Meanwhile, the number of active Bitcoin wallets has increased by almost 50,000 since the SEC's announcement, according to CoinMarketCap.
However, the overall market capitalization of all cryptocurrencies has decreased by about $20 billion since the SEC's announcement.
This is likely due to the increasing number of bearish investors who have sold off their cryptocurrencies in the wake of the SEC's decision not to pursue a case against DCG.
As of Sunday, the market cap of all cryptocurrencies was $269 billion, compared to $309 billion on Saturday.
Bitcoin Rebounds as Bearish Investors Lose Millions
Bitcoin prices rose more than 10% on Sunday, as traders reacted to news that the Securities and Exchange Commission (SEC) has decided not to pursue a case against Barry Silbert’s Digital Currency Group (DCG) over its $450 million investment in Bitfinex.
At press time, Bitcoin was trading at $7,564.14, up from $7,202.06 on Saturday.
Meanwhile, the number of active Bitcoin wallets has increased by almost 50,000 since the SEC's announcement, according to CoinMarketCap.
However, the overall market capitalization of all cryptocurrencies has decreased by about $20 billion since the SEC's announcement.
This is likely due to the increasing number of bearish investors who have sold off their cryptocurrencies in the wake of the SEC's decision not to pursue a case against DCG.
As of Sunday, the market cap of all cryptocurrencies was $269 billion, compared to $309 billion on Saturday.
Bulls Triumphant as Bitcoin Price Soars, Bearish Positions Liquidated
Bitcoin prices rose more than 10% to $2,719 on Tuesday, as bulls succeeded in pushing prices higher despite strong resistance from bears. Bitcoin's market capitalization reached $92.3 billion, according to CoinMarketCap.
Meanwhile, bearish positions have been liquidated, with many traders selling off their holdings to take profits. This has allowed prices to rise and push the market cap above $100 billion.
Bitcoin's price is up more than 10% on Tuesday. Source: CoinMarketCap
Bitcoin's price has been rising lately, as traders try to take profits
Bitcoin's price has been rising lately, as traders try to take profits and liquidate their bearish positions. This has pushed the market cap above $100 billion.
Bitcoin's price is up more than 10% on Tuesday. Source: CoinMarketCap
Bitcoin's price is up more than 10% on Tuesday. Source: CoinMarketCap
Bears Burnt as Bitcoin Recovers, Short Positions Wiped Out
Bitcoin prices recovered from their early morning lows and are now trading near $7,000. This has caused short positions to be wiped out, which has pushed the bitcoin price up even further.
As of this writing, there are currently 8,868,000 bitcoins in circulation. This means that the total number of bitcoins that can be mined is capped at 21 million.
This is good news for bitcoin holders, as it means that the price will continue to rise as more and more people become interested in this digital currency.
Bitcoin Shorts Caught in Unexpected Price Rally, Suffer Heavy Losses
Bitcoin shorts are caught in a price rally, and as a result, suffer heavy losses.
On Thursday, January 25, the cryptocurrency market experienced a sudden price rally, with the price of Bitcoin reaching an all-time high of $19,783. This rally was short-lived, however, and by the end of the day, the price had fallen back to its preexisting levels.
As a result, short-sellers (those who are betting that the price of Bitcoin will go down) were massively affected by this rally, as their positions quickly became worth less. In total, according to data from CoinMarketCap, short positions in Bitcoin were worth $2.8 billion at the time of writing, which is a loss of almost 50% of their value.
Interestingly, this rally was not the only event to affect the cryptocurrency market on Thursday. Earlier in the day, another digital currency, Ethereum, also experienced a brief price spike. As a result, Ethereum shorts saw a smaller loss in value, although they are still worth $1.9 billion overall.
Overall, this is a worrying trend for those who invest in cryptocurrencies on the hope that they will go up in value. It seems increasingly likely that these prices will be volatile and that investors will suffer large losses in the short term.
Bullish Investors Reap Benefits of Recent Bitcoin Price Surge, Bearish Positions Liquidated
Bitcoin prices surged to a new all-time high of $8,000.00 on September 1, 2017, reaching an all-time high of $8,100.00 on September 2. Bitcoin prices have since been trading in a range between $7,500.00 and $8,500.00.
Bullish investors have profited from the recent bitcoin price surge, as bearish positions have been liquidated. This has led to a more balanced market and a better opportunity for both long-term and short-term investors.
