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Bitcoin shorts wiped as price hits new $75K high

Bitcoin shorts wiped as price hits new $75K high

GrafaGrafa2024/11/06 11:00
By:Mahathir Bayena

Bitcoin (CRYPTO:BTC) traders betting on a price drop amid the U.S. election faced losses, with nearly $180 million in short positions liquidated as Bitcoin surged to an all-time high of $75,000.  

According to CoinGlass data, Bitcoin hit $75,000.85 on Coinbase on Nov. 6, breaking the previous record of $73,679 set in March.  

This spike caused about $179.12 million in Bitcoin shorts to be cleared in just four hours.  

Pav Hundal, lead analyst at Swftyx, commented on the surge, saying, “The spot market is flying, and shorts are getting rekt.”  

He added that “Traders are betting that the crypto summer is back, and it’s almost all buy action on our order books right now.”  

In the last 24 hours, total crypto market liquidations reached $483.16 million, with $358.19 million from short bets.  

Hundal noted that this demand is “spot-driven,” making it more significant than a derivatives-based rally.  

“This is spot-driven demand, and that makes it meaningful.  

It’s not a derivatives-fuelled pump,” he explained.  

Spot buying, unlike derivatives, involves acquiring actual coins, which influences both demand and price stability.  

In response to the election, options traders anticipate that volatility will decrease.  

Nick Forster, Derive protocol founder, reported that short-dated volatility expectations remain elevated but could normalize soon.  

“We’re still seeing expectations for short-dated volatility to remain above normal, with the market’s pricing in potential daily fluctuations of 4-5% as the election results are finalized,” Forster said.  

CK Zheng, co-founder of ZX Squared Capital, suggested that a Trump victory could continue driving Bitcoin’s rise due to anticipated crypto-friendly policies.  

Markus Thielen of 10x Research also projected potential for Bitcoin to reach $100,000 by Q1 2025.  

Additionally, Forster mentioned a 15% probability that Bitcoin could surpass $100,000 by year-end, based on current options market pricing.

At the time of reporting, the Bitcoin price was $75,239.73.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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