Bitcoin Price Recovery Reaches $100 Million in Crypto Shorts

Bitcoin is back on the rise – and those betting on the asset’s price falling are doing harm.

In the last 24 hours, nearly $100 million in short positions for all cryptocurrencies were liquidated, data from CoinGlass showwith the current tally just over $99 million.

Most of this was staked in the largest cryptocurrency by market cap, with BTC short position liquidations now at nearly $36 million in 24 hours. In the last four hours alone, nearly $22 million in BTC short positions have evaporated.

Long positions have also suffered losses in the last day, although traders behind short positions are feeling more pain. According to data from CoinGlass, around $44 million worth of long positions were liquidated across all cryptocurrencies in the last 24 hours.

Short positions are held by traders who bet that the price of an asset will fall in the future. If a short position is liquidated, the trader has lost the bet and his position has been closed. On the other hand, long positions are bets that the price of an asset will increase.

O Bitcoin price is up about 5% in the last 24 hours, trading for $61,911, according to CoinGecko. It briefly surpassed the $62,000 mark on Friday morning. The asset had been struggling in recent days and at one point this week dropped below $57,000 per coin.

This is well below Bitcoin’s new all-time high in March of nearly $74,000. That’s even lower than its previous 2021 record of $69,044.

Bitcoin and the broader crypto market took a hit after the Federal Reserve hinted it was in no rush to cut interest rates this week.

Other geopolitical factors, such as the conflict in the Middle East, have also made “risky” assets like Bitcoin less attractive to investors, leading to exits of the newly approved Bitcoin exchange-traded funds (ETFs).

But today, the US government’s Nonfarm Payrolls report showed that the April unemployment rate was higher than expected.

This has been interpreted by some crypto traders as bullish: high unemployment makes it more likely that the Fed will consider lowering interest rates, and lower interest rates mean that crypto will likely be more attractive to investors.

Edited by Andrew Hayward

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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