Key Points
- Bitcoin is only 3% away from its all-time high, with a potential new high triggering a $1.45 billion short position liquidation.
- The recent price surge has led to the liquidation of nearly $328 million in leveraged positions.
Bitcoin is currently on the brink of reaching its all-time high (ATH) of $73,750.
If the cryptocurrency continues its bullish trend and crosses the $74,300 mark, this could lead to the liquidation of nearly $1.45 billion in short positions.
Long-Leveraged Positions Outnumber Short Ones
Data shows that the number of long-leveraged positions significantly surpasses short-leveraged ones.
Shorting Bitcoin (BTC) involves borrowing and selling the cryptocurrency, with the expectation of a price drop.
The trader’s goal is to repurchase Bitcoin at a lower price, repay the loan, and profit from the price difference.
The recent price momentum has led to the liquidation of nearly $328 million in leveraged positions.
Out of this amount, $64 million were long positions, while $264 million were short positions.
Bitcoin’s Recent Price Movements
Bitcoin has been trading in the $60-65,000 range for almost a month following the April halving.
However, the price has risen by over 5% in the past few days, reaching a new multi-week high on Monday by exceeding the $70,000 mark.
Within 24 hours, the leading cryptocurrency was trading above $72,000.
This bullish price momentum is attributed to several factors, including increased investor confidence, a decrease in exchange supply, and a positive influx into spot BTC exchange-traded funds (ETFs) after nearly two weeks of net outflows.
On Monday, spot Bitcoin ETFs saw positive inflows totaling $235 million.
ARK Invest led the inflow, adding over 1,000 BTC, followed closely by BlackRock with an inflow of 965 BTC.
Meanwhile, the Grayscale ETF, which had been experiencing weeks of outflows, recorded an inflow of 140 BTC, marking its fourth consecutive day of positive inflows.
This bullish price action helped Bitcoin reach new highs in several countries, including Japan, Singapore, and Argentina.
