The price of Bitcoin is edging closer to its all-time high (ATH) of $73,750, currently sitting just 3% below. If the bullish momentum continues and Bitcoin surpasses a new ATH of $74,300, it would trigger the liquidation of approximately $1.45 billion in short positions.
According to CoinGlass data, there are significantly more long-leveraged positions compared to short-leveraged positions. Shorting Bitcoin involves borrowing BTC and selling it, anticipating a price decline. The goal is to repurchase the Bitcoin at a lower price, repay the loan, and profit from the price difference.
Aside from the potential impact on short sellers due to future price movements, the price momentum over the past 24 hours has already led to the liquidation of around $328 million in leveraged positions. Out of this amount, $64 million were from long positions, while $264 million were from short positions.
Since the block subsidy halving in April, Bitcoin has been trading sideways in the range of $60,000 to $65,000 for almost a month. However, in the past few days, the price has surged by over 5%, surpassing the $70,000 mark on May 20 and reaching a new multiweek high. Within 24 hours, Bitcoin was trading above $72,000.
The recent bullish momentum can be attributed to various factors, including growing investor confidence, decreasing exchange supply, and inflows into US-based spot Bitcoin exchange-traded funds (ETFs) after nearly two weeks of net outflows.
On May 20, spot Bitcoin ETFs witnessed positive inflows totaling $235 million. ARK Invest led with the largest net inflow, adding over 1,000 BTC, followed closely by BlackRock with an inflow of 965 BTC. Additionally, the Grayscale ETF, which experienced weeks of outflows, recorded an inflow of 140 BTC, marking its fourth consecutive day of positive inflows.
Bitcoin’s current bullish price action has also resulted in new highs in various countries, including Japan, Singapore, and Argentina.
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