[Newsflash] $30 Million Worth of Bitcoin Shorts Closed on Bitfinex by Crypto Market Traders
As many of our regular readers are probably well aware of, the world's largest cryptocurrency by total market capitalization — Bitcoin [BTC] — has been gaining a lot of mainstream media traction recently.
This is because the flagship alt-asset recently broke past its all important $5,000 resistance barrier, with the currency currently sitting at a price point of around $5,183. Additionally, it also appears as though BTC’s ongoing bullish momentum will seemingly persist for a large chunk of the foreseeable future.
At this point in the article, we should mention that ever since BTC started to surge a week or so ago, a number of other premier altcoins too (such as Ether, EOS, XRP) have started to gain a lot of financial momentum.
With that being said, it should be pointed out that Bitcoin’s impressive market performance has had an adverse effect on short traders — with many of the asset’s positions being liquidated within a short span of time recently. To be even more specific, we can see that recent reports indicate that BTC’s $5,000 value breach resulted in the liquidation of over $400 million shorts on BitMEX.
If that wasn’t enough, according to the findings of many independent analysts on Reddit, more than $30 million in shorts were closed on Bitfinex over the course of the past 24-hours alone— thereby signalling a value drop of more than 25%.
Chart Courtesy of TradingView.com
Last but not least, we should also point out that the aforementioned dip signalled the biggest shorts drop for BTC in over a year. In this regard, the last time such levels were witnessed were during March 2018.
In light of these latest developments, many analysts have noted that when “leveraged shorts are low”, the market tends to end up crashing sooner or later (or atleast starts to witness sluggish conditions once again).
Also, for those of our readers who might not be aware, short sellers usually make their money by “borrowing funds” when they feel that the Bitcoin market is starting to witness positive financial movement. Following this, these assets are once again sold into the market.
In closing out this piece, we should mention that many of the technical indicators associated with the alt-coin sector seem to be extremely positive at the moment. However, only time will tell how the future of this burgeoning domain plays out.
Live Bitcoin (BTC) Price:
1 BTC/USD =$59,657.1779 change ~ -1.08%