Bitcoin (BTC) continued its rally on February 9, after Tesla announced that it bought 1.5 billion worth of BTC, and rose to $ 48,000. Bitcoin price jumped from $ 39,000 to $ 45,000 after the news was heard on February 8.
Bitcoin Price Index: 1 Bitcoin How Many TL? (BTC TL)
Short positions liquidated
The increase in the bitcoin price to $ 45,000 resulted in the $ 500 million short position liquidated.
According to Bybt.com data, a futures position worth $ 1.34 billion has been liquidated in the last 24 hours.
This indicates two trends: First, there was an excess of short positions in the derivatives market, and Tesla news caused a giant short position squeeze. Second, many investors did not expect Tesla to invest in Bitcoin.
On the other hand, investors are wary of the market due to the excessive increase in funding rates in major futures exchanges.
The funding rate increases when the majority of the market takes short or long positions. The high funding rate makes the market vulnerable to a long position squeeze and therefore a big short-term fall.
On the other hand, cryptocurrency investor “Loma” claimed that the market has not yet become too confident. Loma said that at one point investors were too confident and did not expect a major drop, at this point a correction was made. said it was possible:
“Before I close my spot BTC positions, I want us to get to the point where people think 70-90 percent correction is impossible. I remember thinking it was impossible for BTC to drop below $ 10K again in 2018. We had dropped to $ 3,500. Never say never. “
On the other hand, CryptoQuant CEO Ki Young Ju said that an increase was detected in the amount of stablecoins entering the stock markets, which indicates buyer demand. This situation in the short term Bitcoin could trigger price surge:
“You can call me crazy, but I think we will see 50 thousand dollars very soon. Stablecoin deposits signal this. “