The data shows that Monday’s crowded Bitcoin shorts led to the biggest squeeze on record in cryptocurrency history.
Bitcoin sets the biggest short squeeze in history
according to Arcane Research According to the report, BTC recorded the largest squeeze in its history, and short positions worth $750 million were liquidated.
This is a chart showing the data of Bitcoin short liquidation in the past year:
BTC short squeeze spikes | Source: Arcane Research
As can be clearly seen from the above chart, the short squeeze that occurred on Monday, July 26, has not occurred in the past year. In fact, this is the largest time in the history of cryptocurrency, surpassing the notorious short squeeze in 2017, which caused BTC to reach a record high at the time.
Before yesterday, BTC had been hovering at a low of $30,000 for some time, and its price seemed to be gradually falling. As a result, highly leveraged BTC short positions have been accumulating.
Because Amazon rumors E-commerce giants will start accepting cryptocurrency payments, and the price of BTC has suddenly soared from US$34,500 to US$39,500.
Since this rise is completely unexpected, short sellers are eager to squeeze short positions to reduce losses. And this short squeeze is so great that at least $750 million of short positions have been liquidated.
An interesting thing is BinanceThe largest cryptocurrency exchange in the market changed its API after the crash in May. With this modification, the API only releases the data cleared in one second.
This means that any data from Binance will be seriously underestimated. This is why “at least” $750 million of short positions were liquidated. The actual figure is almost certainly much higher than this.
At the time of writing Bitcoin price The transaction price is approximately US$37,700, a 27% increase in the past 7 days. In the past month, the value of cryptocurrencies has risen by 14%.
This is a chart that highlights the price trend coin In the past year:
BTC gains a sharp upwards trend | Source: BTCUSD on TradingView
After being trapped in the range of US$30,000 to US$35,000 for a period of time, Bitcoin finally managed to break through the range market.
The cryptocurrency once hit the $40,000 mark, but soon fell to these levels. Amazon stepped forward to confirm that the rumors behind the price spike were false, which caused the price to fall by $37,000.
Not sure where coin The next step will be, but some volatility in the end will surely at least keep the price moving, whether it’s down or up.