The price of Bitcoin is on the verge of reaching its all-time high (ATH) of $73,750, sitting just 3% below it. If the current bullish momentum continues and Bitcoin surpasses $74,300, it would trigger the liquidation of approximately $1.45 billion in short positions.
According to data from CoinGlass, there is a significantly higher number of long-leveraged positions compared to short-leveraged positions. Shorting Bitcoin involves borrowing BTC and selling it in anticipation of a price decline. The trader aims to buy back the Bitcoin at a lower price, repay the loan, and profit from the price difference.
Apart from the potential impact on short sellers, the price movement in the past 24 hours has already led to the liquidation of around $328 million in leveraged positions. Out of this total, $64 million were long positions, while $264 million were short positions.
Bitcoin has been trading sideways in the range of $60,000 to $65,000 for almost a month since the block subsidy halving in April. However, in the past few days, the price has surged by over 5%, breaking the $70,000 mark on May 20 and reaching a new multiweek high. Within 24 hours, the leading cryptocurrency was trading above $72,000.
The recent bullish price momentum can be attributed to several factors, including growing investor confidence, decreasing supply on exchanges, and inflows into spot Bitcoin exchange-traded funds (ETFs) based in the United States. After experiencing net outflows for nearly two weeks, spot Bitcoin ETFs saw positive inflows of $235 million on May 20. ARK Invest led the way with the largest net inflow, adding over 1,000 BTC, followed closely by BlackRock with an inflow of 965 BTC. The Grayscale ETF, which had been experiencing outflows for weeks, recorded an inflow of 140 BTC, marking its fourth consecutive day of positive inflows.
The current bullish price action for Bitcoin has also resulted in new highs being reached in various countries, including Japan, Singapore, and Argentina.