TL; Fault DR
- Bitcoin shorts (BTC) worth $ 47 million are dissolved in one hour.
- The price of Bitcoin has risen from $ 41,000 to $ 47,000 in the last three days.
After the extraordinary performance of Bitcoin (BTC) two days ago, the dissolution of shorts worth approximately $ 47 million in one hour was recorded. One Analyzer, While reading the information of future trades, noticed this on Twitter and mentioned it.
The BTC has risen from $ 41,000 to $ 48,000 in the last three days, increasing trading volume and cash inflows.
Bitcoin will finally float between 40 and 45 thousand dollars after a long time. In addition, the suppression of Chinese cryptography further delayed the arrival of the bull. The price of Bitcoin rose 10 percent in 24 hours yesterday to $ 48,000.
Futures trading is a type of trading in which traders do not have a coin, but guess its price. To participate, a trader first offered some margin, minimum collateral. When a trader predicts that prices will fall in the future, they opt for the “short” future, while those who think the coin will fall continue for the “long”.
If the coin goes in the direction they bet, the trader will benefit. During the liquidation, the trader loses some or all of it, the exchange platform forcibly closes its position. Many cryptocurrencies, such as Binance, allow users to use cryptocurrencies as a margin.
Bitcoin Aggressive Attitude
The $ 47 million short-term jump in Bitcoin liquidity means significant losses experienced by these traders yesterday. Due to its extreme volatility, such closures are not uncommon in the crypto market.
Despite the potential consequences and risks, many traders still use shorts to use in the future to maintain their position in instant trades. With just one guess, they make a huge profit.
It will be interesting to see the market move as many experts and institutional investors speculated in October that the market was moving upwards.