Crowded Bitcoin Shorts Leads To Largest Recorded Squeeze In History
28 July 2021 - 5:00AM
NEWSBTC
Data shows that on Monday crowded Bitcoin shorts have lead to the
largest recorded squeeze in the history of the cryptocurrency.
Bitcoin Records Largest Short Squeeze Ever As per an Arcane
Research report, BTC has recorded the largest squeeze in its
history where $750 million worth of shorts have been liquidated.
Here is a chart that shows the data for Bitcoin short liquidations
over the past one year: BTC short squeeze spikes | Source: Arcane
Research As is clear from the above graph, the short squeeze seen
on Monday, 26 July, hasn’t been observed in the past year. In fact,
it’s the largest ever in the crypto’s history, surpassing the
infamous 2017 short squeeze that lead to BTC reaching its then
all-time-high. Related Reading | Bitcoin Indicator Forecast Calls
For $46K, New All-Time Highs Possible Before yesterday, BTC had
been floating in the low $30ks for quite some while with its price
seemingly being on a gradual decline. As a result, high leveraged
BTC short positions had been accumulating. Due to the Amazon rumor
that the ecommerce giant would start accepting cryptocurrency
payments, BTC had a sudden surge in price that took it from 34.5k
to 39.5k. As this rise was totally unexpected, short sellers
hurried to squeeze their shorts in order to cut their loses. And
this short squeeze was so large that at least $750 million shorts
were liquidated. An interesting thing is that Binance, the largest
crypto exchange by market volume, made a change to their API after
the crash in May. With this modification, the API only publishes
data for one liquidation for second. This means that any data
coming from Binance would be quite underestimated. Hence why “at
least” $750 millon in shorts were liquidated. The real figure is
almost definitely much higher than that. BTC Price At the time of
writing Bitcoin’s price is trading around $37.7k , up 27% in the
last 7 days. Over the past month, the crypto has gained 14% in
value. Here is a chart that highlights the trends in the price of
the coin over the last one year: BTC gains a sharp upwards trend |
Source: BTCUSD on TradingView After being stuck in the $30k to $35k
range for a while, Bitcoin has finally managed to break through the
range bound market. The crypto momentarily touched the $40k mark,
but it fell down quickly to these levels. Amazon came forth and
confirmed that the rumor that was behind the surge in the price is
false, and that has driven the price to down $37k. Related Reading
| How The 55% Bitcoin Correction Revives Comparisons To Past Bull
Cycle It’s unclear where the coin will head next, but some
volatility at last is sure to at least keep the price moving,
whether downwards or upwards.
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From May 2023 to May 2024