Bitcoin’s Rally to $62,000 Triggers $26.65 Million Short Squeeze in 4 Hours

After reaching a low of $56,500 on April 30, bitcoin climbed to a peak of $62,109 by Friday, May 3, in response to the previous downturn. This uptick resulted in the liquidation of $26.65 million in bitcoin short positions within just four hours, and approximately 48,962 traders found their positions liquidated over the last day.

Short Sellers Scramble as Bitcoin and Crypto Economy Ascends

The price of bitcoin (BTC) increased by 4.5% against the U.S. dollar on Friday, rebounding from last week’s decline when it fell beneath the psychological $60,000 mark. Despite this 4.5% rise over 24 hours, BTC prices remain 4.3% below their level from seven days prior. After stabilizing for nearly two days, the upward movement of BTC began at 8 a.m. Eastern Time (ET) on Friday.

Four-hour liquidation heat map according to coinglass.com figures on May 3, 2024.

At that time, BTC prices were hovering just above the $59,000 mark. However, a boost in buying activity elevated the price to a daily high of $62,109 by 11 a.m. (ET). Bitcoin has accounted for approximately $33.28 billion of the crypto economy’s total $89.19 billion trading volume. This increase in Bitcoin’s price led to a significant number of short traders on derivatives markets being eliminated.

Metrics from Coinglass.com indicate that $26.65 million in bitcoin short positions were liquidated within a four-hour period. ETH shorts experienced a $16.93 million loss, while $4.51 million in SOL short positions were removed from the market. Statistics reveal that nearly 50,000 traders were eliminated, with $139.97 million liquidated, of which $94.78 million were shorts, or bets against the rise in crypto prices. Currently, BTC’s price has retreated from the $62K peak to between $61,600 and $61,800 per coin in the past hour.

What do you think about bitcoin’s sudden spike and the short sellers getting wiped out? Share your thoughts and opinions about this subject in the comments section below.

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