In the aftermath of a recent drop in Bitcoin’s value, if it quickly bounces back to its June 6 price of $71,000, over a billion dollars worth of short positions will be eliminated.
On June 7, Bitcoin (BTC) experienced a 3.33% decline to $68,507 before recovering slightly above the crucial level of $69,000 amidst broader economic uncertainties triggered by the United States Employment Situation Summary Report, which indicated higher job growth than anticipated in May.
Following Bitcoin’s price drop, Ether (ETH) also saw a 3.58% decrease over the span of 24 hours, while other altcoins like Solana’s (SOL), Dogecoin (DOGE), and Pepe (PEPE) suffered losses of 5.61%, 8.70%, and 9.99% respectively, according to CoinMarketCap data.
The market downturn resulted in a total wipeout of $409.51 million in short and long positions across the market, as per CoinGlass data. Out of this, $56.71 million constituted long positions in Bitcoin.
If Bitcoin manages to climb back to $71,000, around $1.38 billion in short positions will be liquidated. Despite trading between $70,000 and $71,662 on June 5 and 6, many traders had hoped for a move closer to its all-time high of $73,679.
Currently, traders are more inclined towards shorting Bitcoin, indicating skepticism regarding a swift recovery. In fact, if Bitcoin reaches $71,000, $1.38 billion in long positions will be eradicated, signaling expectations of further price drops by futures traders.
This shift in sentiment comes amid ongoing discussions about why Bitcoin has not surpassed its March all-time highs, despite a positive streak of inflows into Bitcoin exchange-traded funds (ETFs) for 19 consecutive days.
Analysts have pointed out that various factors influence Bitcoin’s price, and ETFs alone may not suffice. Charles Edwards, the founder of Capriole Investments, highlighted that while ETF flows are significant, they are not potent enough to counteract selling pressure from the entire market.
Crypto trader Christopher Inks reiterated that the market encompasses spot, futures, ETFs, and options, emphasizing the complexity of factors at play.
Looking ahead, a longevity expert has predicted that AI will play a crucial role in achieving biological immortality by 2030.