Bitcoin’s price experienced a significant surge after hitting a low of $56,500 on April 30. By Friday, May 3, it had climbed to a peak of $62,109 as a response to the previous downturn. This sudden uptick in price resulted in the liquidation of $26.65 million in bitcoin short positions within a mere four hours. Over the course of the past day, around 48,962 traders found their positions liquidated.
The increase in bitcoin’s price can be attributed to its 4.5% rise against the U.S. dollar on Friday, bouncing back from last week’s decline that saw it fall below the psychological $60,000 mark. Despite this positive movement, bitcoin prices remain 4.3% lower than they were seven days prior. The upward movement of bitcoin began at 8 a.m. Eastern Time (ET) on Friday, after stabilizing for nearly two days.
At that time, bitcoin prices were slightly above $59,000. However, a surge in buying activity propelled the price to reach a daily high of $62,109 by 11 a.m. (ET). Bitcoin’s trading volume accounts for approximately $33.28 billion of the total $89.19 billion crypto economy. This increase in bitcoin’s price led to the elimination of a significant number of short traders on derivatives markets.
Data from Coinglass.com reveals that $26.65 million in bitcoin short positions were liquidated within a four-hour period. In addition, shorts for Ethereum (ETH) experienced a loss of $16.93 million, while $4.51 million in Solana (SOL) short positions were removed from the market. Approximately 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, bitcoin’s price has retreated from its peak of $62,000, hovering between $61,600 and $61,800 per coin in the past hour.
What are your thoughts on bitcoin’s sudden price spike and the elimination of short sellers? Feel free to share your opinions in the comments section below.
