Altcoins Can Liquidate Short Positions as Bitcoin Approaches $68,000, According to Analysts!

As cryptocurrency markets continue their rise, with Bitcoin (BTC) breaking above $67,000 after its quadrennial halving event, altcoins are poised to squeeze short positions, according to a leading hedge fund.

Altcoins Are Preparing to Squeeze Short Positions, According to Hedge Fund

Bitcoin reached the $67,000 milestone, rising over 3% in the last 24 hours following its halving event over the weekend. Meanwhile, Ethereum (ETH) posted a more modest gain of 1.5% over the same period, trading above $3,200

Digital asset-focused stocks also rose, with shares of Coinbase (COIN) and MicroStrategy (MSTR) gaining 7% and 12%, respectively.

Public miners such as Riot Platforms (RIOT) and Hut 8 (HUT) witnessed significant gains of 15% to 20%, while Marathon Digital (MARA) advanced 6% on a trading spree that spurred fee increases, a major source of income for miners.

Markus Thielen, founder of 10x Research, warned of potential market weakness in the short term as miners offload their BTC inventories to maintain operational stability following post-halving revenue disruptions.

However, looking ahead, historical models show a bullish trend for Bitcoin prices around 50-100 days after the halving events, providing an opportunity for BTC bulls to establish larger long positions, according to crypto hedge fund QCP Capital.

Additionally, QCP Capital highlighted that funding rates on leveraged derivatives trading have fallen and some smaller cryptocurrencies are experiencing negative funding rates, potentially indicating an environment ripe for a short squeeze.

*This is not investment advice.

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