If Bitcoin returns to the price it held for two days before its slight dip, it could eliminate a significant number of short positions.
Should Bitcoin quickly rebound from its recent drop to its June 6 price of $71,000, over a billion dollars worth of short positions will be wiped out.
On June 7, Bitcoin dropped 3.33% to $68,507 before slightly recovering to just over $69,000. This drop came amid broader economic uncertainty caused by the U.S. Employment Situation Summary Report, which showed more job growth than expected in May.
Along with Bitcoin’s price decline, Ether also fell 3.58% over 24 hours, and several altcoins, including Solana, Dogecoin, and Pepe, took hits of 5.61%, 8.70%, and 9.99%, respectively, according to CoinMarketCap data.
The market plunge resulted in $409.51 million being wiped out from both short and long positions across the board, according to CoinGlass data. Of this, $56.71 million were long positions in Bitcoin.
However, two days before Bitcoin’s price drop, on June 5 and 6, it hovered between $70,000 and $71,662. Many traders were hopeful it might inch closer to its all-time high of $73,679.
Traders Heavily Lean Towards Shorting Bitcoin
Now, traders are betting that Bitcoin’s price might not bounce back quickly.
If Bitcoin returns to $71,000, $1.38 billion in short positions will be wiped out, showing that futures traders expect further price declines.
This comes after investors have been wondering why Bitcoin’s price hasn’t surpassed its March all-time highs recently, especially given the 19-day streak of positive inflows into Bitcoin exchange-traded funds (ETFs).
Summary Review: Bitcoin’s price movements continue to create significant ripples in the market, affecting both long and short positions. The recent drop and potential rebound highlight the volatility and high stakes in cryptocurrency trading. As traders and investors navigate these fluctuations, the future of Bitcoin’s price remains uncertain, especially amidst ongoing economic shifts and market sentiment.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
