2024

Bitcoin

Grayscale Bitcoin Trust

<p>The post <a href="https://coinpedia.org/news/biggest-short-squeeze-in-years-triggers-massive-liquidation-event-bitcoin-to-surge-soon/" rel="noopener noreferrer nofollow">Biggest Short Squeeze in Years Triggers Massive Liquidation Event, Bitcoin To Surge Soon</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Cryptocurrencies, including Bitcoin and Ether, surged on Tuesday after the US SEC asked exchanges to <a href="https://coinpedia.org/news/fidelity-files-updated-s-1-application-for-spot-ethereum-etf-ahead-of-sec-looming-deadline/" rel="noopener noreferrer nofollow">update regulatory filings</a> for ether exchange-traded funds (ETFs). Bitcoin soared to $71,957, and Ether reached $3,720.80, levels last seen on April 9.&nbsp;</p>
<p>This dramatic rise was driven by a massive short squeeze, resulting in the largest liquidation event since 2022. Meanwhile, bitcoin shorts valued at $1.4 billion are at risk of liquidation if BTC’s price reaches $74.3K.</p>
<h2 class="wp-block-heading" id="h-bitcoin-see-record-breaking-liquidations">Bitcoin See Record-Breaking Liquidations</h2>
<p>Yesterday, Bitcoin’s price jumped over 8%, marking one of its best days in 2024 that caught the attention of investors and analysts alike. This surge was largely driven by a short squeeze, where a sudden price increase forced traders holding short positions to buy back Bitcoin to cover their losses.&nbsp;</p>
<p>This buying pressure increases Bitcoin’s price movement, resulting in one of the most notable single-day performances in recent years.&nbsp;</p>
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   <p lang="en" dir="ltr">Short squeeze drives biggest liquidation event since 2022 on <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a><br><br>“During the day, around US$259 million in sales contracts were liquidated, which ended up generating significant cash buying pressure.” – By <a href="https://twitter.com/caueconomy?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@caueconomy</a> <br><br>Link <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://t.co/tyTi3K8PJ2" rel="noopener noreferrer nofollow">https://t.co/tyTi3K8PJ2</a></p>— CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1792889720885715302?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 21, 2024</a>
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<p>Meanwhile, the futures market saw approximately $259 million in sales contracts liquidated in a single day. This liquidation not only generated significant cash-buying pressure but also marked the largest short contract liquidation event since 2022.&nbsp;</p>
<h2 class="wp-block-heading" id="h-bitcoin-etf-record-massive-inflow">Bitcoin ETF Record Massive Inflow</h2>
<p>However, the recent <a href="https://cryptoquant.com/asset/btc/chart/exchange-flows" rel="noopener noreferrer nofollow">inflows reflect a growing</a> interest in Bitcoin spot ETFs, as investors respond to intense accumulation from institutional investors and anticipated interest rate cuts.</p>
<p>Meanwhile, spot bitcoin ETFs recorded $948.3 million in inflows last week, with five consecutive days of inflows. The Ark Invest and 21Shares’ ETF led the charge with an inflow of $68.2812 million, followed closely by BlackRock’s iShares Bitcoin Trust with $66.3502 million and the Grayscale Bitcoin Trust with $9.3475 million.</p>
<h2 class="wp-block-heading" id="h-1-45-b-short-position-74-3k">$1.45 B Short Position @74.3k</h2>
<p>As Bitcoin’s price continues to rise, retail investors are expected to contribute to additional buying pressure, driven by the fear of missing out (FOMO). However, analysts caution that short-term corrections may emerge, given the recent volatility and rapid price movements.</p>
<p>With Bitcoin’s price hovering just 3% below its all-time high (ATH) of $73,750, there’s speculation about its next move. If the current bullish momentum persists and Bitcoin surpasses the $74,300 mark, it could prompt the liquidation of approximately <a href="https://www.coinglass.com/LiquidationData" rel="noopener noreferrer nofollow">$1.45 billion in short positions</a>.</p>

Biggest Short Squeeze in Years Triggers Massive Liquidation Event, Bitcoin To Surge Soon

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