21 May Bitcoin Price at $74.3K May Trigger $1.4B Short Liquidations
Crypto News- Bitcoin’s price is currently just 3% away from its all-time high (ATH) of $73,750. Should the bullish trend persist and push BTC past $74,300, we could see the liquidation of nearly $1.45 billion in short positions. CoinGlass data reveals a significantly higher number of long-leveraged positions compared to short-leveraged ones.
Shorting Bitcoin involves borrowing BTC and selling it with the expectation that the price will drop. The trader aims to repurchase the Bitcoin at a lower price, repay the loan, and pocket the difference as profit.
Recent price movements have already impacted leveraged positions. Over the past 24 hours, nearly $328 million in positions have been liquidated, with $264 million of those being shorts and $64 million being longs.
Recent Bitcoin Surge Driven by Investor Confidence and ETF Inflows
Bitcoin has been trading sideways in the $60,000 to $65,000 range for almost a month following the block subsidy halving in April. However, in the past few days, BTC has surged over 5%, breaking the $70,000 barrier on Monday, May 20, and reaching a new multiweek high above $72,000. This bullish momentum is driven by factors such as growing investor confidence, declining exchange supply, and renewed inflows into U.S.-based spot Bitcoin exchange-traded funds (ETFs) after nearly two weeks of net outflows.
Strong ETF Inflows Boost Bitcoin Market on May 20
On May 20, spot Bitcoin ETFs experienced positive inflows totaling $235 million. ARK Invest led with an addition of over 1,000 BTC, followed by BlackRock with 965 BTC. Grayscale ETF, which had been seeing outflows for weeks, reported an inflow of 140 BTC, marking its fourth consecutive day of positive inflows.
This bullish trend has also seen Bitcoin reaching new highs in several countries, including Japan, Singapore, and Argentina.
FAQs
What is the current status of Bitcoin’s price compared to its all-time high?
Bitcoin’s price is currently just 3% away from its all-time high (ATH) of $73,750.
What could happen if Bitcoin surpasses $74,300?
Should the bullish trend persist and push BTC past $74,300, we could see the liquidation of nearly $1.45 billion in short positions.
What is the concept of shorting Bitcoin?
Shorting Bitcoin involves borrowing BTC and selling it with the expectation that the price will drop. The trader aims to repurchase the Bitcoin at a lower price, repay the loan, and pocket the difference as profit.
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