As the largest digital coin by market cap continues to soar, those betting on the price of Bitcoin (BTC) to fall are losers: Over $79 million in BTC short positions have been wiped out in the last 24 hours.
That's according to data from analytics firm CoinGlass, and looking at short positions across all cryptocurrencies, $147 million worth of positions were liquidated over the same period.
Shorts are derivative contracts that allow investors to bet that the price of an asset will decline. When a short sale is liquidated, the trader has lost the bet and his position is closed.
BTC has surged following an inflow of capital into major crypto investment products – primarily the 10 BTC exchange traded funds (ETFs) – in recent weeks.
The new Bitcoin ETFs received the green light from the US Securities and Exchange Commission on January 10th. Since then, a lot of capital has flowed into the funds that give investors access to the largest digital asset, helping to drive up the price of BTC.
A CoinShares report on Monday showed that $1.1 billion flowed into the fund focused on digital assets last week.
Bitcoin is currently trading for $51,680, up more than 6% in the past day. Last week, the coin, commonly referred to as “digital gold,” rose 20% in a week. However, it is still 25% below its November 2021 all-time high of $69,044.
Edited by Andrew Hayward
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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