Bitcoin Breaks Above $30,000, Wipes Out $100mln Short Positions
Bitcoin (BTC) broke above the psychological level of $30,000 to hit a new high of $31,356. While the news is elating for Bitcoin bulls, it has spelled bad news for short sellers who never expected Bitcoin to break above $30,000.
Data provided by Cointelegraph Markets, TradingView and Cryptometer affirmed that BTC/USD continues to rise even at the time of writing this article and on its way upwards $100 million of short positions have been liquidated.
Against the backdrop of high volatility, Bitcoin broke above $30,000 multiple times on New Year’s Day, eventually staying above the psychological level. The initiative was fueled by a rise in momentum that pushed the crypto further higher.
Even though several crypto enthusiasts lauded, many traders lost heavily in matter of few minutes.
Liquidated short on XBTUSD: Buy 10,000,000 @ 30864 🏅🏆💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯 ~ I’m shocked, shocked to find that gambling is going on in here!
— REKT (@BXRekt) January 2, 2021
A bot monitoring dilution of trades on derivatives behemoth BitMEX summed up as follows in the following tweet:
“I’m shocked, shocked to find that gambling is going on in here!”
Figures indicate that short sellers lost around $10 million on BitMEX exchange alone, a stark reminder of how dangerous Bitcoin can turn out in case of wrong assessment. In the meanwhile, altcoin are seeing portfolio churn out. Dogecoin (DOGE), a well-tracked meme crypto, rallied 42% in a day, while altcoin driver Ether (ETH) skyrocketed above $750.
Notably, Cointelegraph Markets analyst Michaël van de Poppe trusts that the month will pave way for the beginning of a wider “alt season.”
When Bitcoin hit $30,000, he tweeted:
“The higher this impulse wave goes for #Bitcoin , the higher the next one will be as well. 2021 is going to be fire.”
The higher this impulse wave goes for #Bitcoin , the higher the next one will be as well.
2021 is going to be fire.
— Michaël van de Poppe (@CryptoMichNL) January 2, 2021