The Rise of Bitcoin Wipes Out $79 Million in Short Positions
Bitcoin’s skyrocketing price has left those who bet on its downfall in the dust. In the past 24 hours alone, over $79 million worth of Bitcoin short positions have been liquidated, according to data from CoinGlass. Across all cryptocurrencies, a total of $147 million in short positions have been wiped out.
The Impact of Bitcoin ETFs
The surge in Bitcoin’s price can be attributed to the influx of capital into large crypto investment products, particularly the newly approved Bitcoin exchange-traded funds (ETFs). These funds, which provide investors with exposure to the leading digital asset, have attracted significant amounts of capital since receiving approval from the U.S. Securities and Exchange Commission on January 10.
A recent report by CoinShares revealed that $1.1 billion flowed into digital asset-focused funds last week.
Bitcoin’s Current Performance
Currently, Bitcoin is trading at $51,680, representing a more than 6% increase in the past day. Over the past week, the cryptocurrency has risen by 20%, although it remains 25% below its all-time high of $69,044 reached in November 2021.
Hot Take: The Winners and Losers of Bitcoin’s Surge
The recent surge in Bitcoin’s price has resulted in substantial losses for those who bet against it. With over $79 million worth of short positions liquidated, it is clear that those who anticipated a drop in Bitcoin’s value have suffered significant setbacks. On the other hand, investors who capitalized on the rise have reaped substantial gains. As Bitcoin continues to captivate the market and make headlines with its impressive performance, it serves as a reminder that predicting its future trajectory remains a challenging task.
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