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Home Bitcoin

$371M in crypto shorts wiped out as Bitcoin hits $76k: Is $80K the next stop?

November 8, 2024
in Bitcoin
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$371M in crypto shorts wiped out as Bitcoin hits $76k: Is $80K the next stop?
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  • Crypto shorts worth $371M were squeezed, showing the rise of speculative dominance.
  • However, weak fundamentals could quickly reverse this momentum.

The election buildup sparked massive liquidity in the options market, wiping out $371 million in crypto shorts and driving Bitcoin [BTC] to a new ATH of $76K.

With a 25 bps FOMC rate cut adding nearly 2% since the last close, the market’s bullish momentum is undeniable. This surge may propel BTC to $78K, as retail investors rush in, driven by Bitcoin-friendly sentiment.

However, as shown in the delta, long liquidations are stacking up, which could trigger a long squeeze before the weekend. Thus, a small pullback to shake out FOMO-driven longs poses a real risk.

Crypto shorts squeezed

Source : HyblockCapital

In short, those who jumped in too quickly, influenced by the hype, might find themselves at risk if the market turns against them.

Therefore, strategizing at this crucial moment is key. Anyone betting on quick gains based on speculation rather than solid fundamentals may face losses.

Volatility brewing as the derivative market evolves

The election buildup, coupled with high-profile endorsements, has created the right conditions for BTC to potentially reach $80K by the end of this month.

Historically, post-election hype has triggered similar reactions, but over the past four years, the derivative market has evolved, with Open Interest (OI) now hitting a new all-time high of $45 billion.

As more bets are placed, the rally is increasingly driven by speculative positions, as seen with the $371M in crypto shorts being liquidated.

In the past three days alone, $26 billion in long positions were opened as speculators bet on a potential bull rally, driven by optimism surrounding Trump’s victory.

See also  Bitcoin dominance dips to 52%: Is a market shake-up coming?

While this is a bullish signal, a lack of strong buying interest could trigger a long squeeze, jeopardizing BTC’s ability to reach the $80K target.

Therefore, the key now is to refocus on the fundamentals to gauge how the market is reacting to this evolving pattern.

Can crypto shorts become more vulnerable?

A recent AMBCrypto report revealed that retail investors are seizing BTC’s dip, driving it to new highs as it hits a market bottom. Meanwhile, institutional interest surges, with BTC ETFs seeing $1.3 billion in inflows – the largest since its launch.

BTC ETFS

Source : Farside Investors

For the current $76K level to serve as a strong bottom with the potential for a $100K surge, steady accumulation from both retail and institutional investors is crucial. Without this backing, a long squeeze could threaten the rally.


Read Bitcoin’s [BTC] Price Prediction 2024–2025


Conversely, with strong support, more long positions will likely join, leaving crypto shorts increasingly vulnerable.

If the rally is sustainable, a long-term upward trend could continue, potentially pushing BTC above $80K. However, monitoring the derivative market now is more important than ever.

Next: Ethereum price prediction – Will rising leverage drive or weaken ETH’s rally?

READ ALSO

Bitcoin nears $91K as buying pressure soars, but challenges emerge

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  • Crypto shorts worth $371M were squeezed, showing the rise of speculative dominance.
  • However, weak fundamentals could quickly reverse this momentum.

The election buildup sparked massive liquidity in the options market, wiping out $371 million in crypto shorts and driving Bitcoin [BTC] to a new ATH of $76K.

See also  Illegal crypto mining rigs found in Poland’s Supreme Administrative Court

With a 25 bps FOMC rate cut adding nearly 2% since the last close, the market’s bullish momentum is undeniable. This surge may propel BTC to $78K, as retail investors rush in, driven by Bitcoin-friendly sentiment.

However, as shown in the delta, long liquidations are stacking up, which could trigger a long squeeze before the weekend. Thus, a small pullback to shake out FOMO-driven longs poses a real risk.

Crypto shorts squeezed

Source : HyblockCapital

In short, those who jumped in too quickly, influenced by the hype, might find themselves at risk if the market turns against them.

Therefore, strategizing at this crucial moment is key. Anyone betting on quick gains based on speculation rather than solid fundamentals may face losses.

Volatility brewing as the derivative market evolves

The election buildup, coupled with high-profile endorsements, has created the right conditions for BTC to potentially reach $80K by the end of this month.

Historically, post-election hype has triggered similar reactions, but over the past four years, the derivative market has evolved, with Open Interest (OI) now hitting a new all-time high of $45 billion.

As more bets are placed, the rally is increasingly driven by speculative positions, as seen with the $371M in crypto shorts being liquidated.

In the past three days alone, $26 billion in long positions were opened as speculators bet on a potential bull rally, driven by optimism surrounding Trump’s victory.

While this is a bullish signal, a lack of strong buying interest could trigger a long squeeze, jeopardizing BTC’s ability to reach the $80K target.

Therefore, the key now is to refocus on the fundamentals to gauge how the market is reacting to this evolving pattern.

See also  What Bitcoin's rising hashrate means for you

Can crypto shorts become more vulnerable?

A recent AMBCrypto report revealed that retail investors are seizing BTC’s dip, driving it to new highs as it hits a market bottom. Meanwhile, institutional interest surges, with BTC ETFs seeing $1.3 billion in inflows – the largest since its launch.

BTC ETFS

Source : Farside Investors

For the current $76K level to serve as a strong bottom with the potential for a $100K surge, steady accumulation from both retail and institutional investors is crucial. Without this backing, a long squeeze could threaten the rally.


Read Bitcoin’s [BTC] Price Prediction 2024–2025


Conversely, with strong support, more long positions will likely join, leaving crypto shorts increasingly vulnerable.

If the rally is sustainable, a long-term upward trend could continue, potentially pushing BTC above $80K. However, monitoring the derivative market now is more important than ever.

Next: Ethereum price prediction – Will rising leverage drive or weaken ETH’s rally?
Tags: 371M76K80KBitcoinCryptohitsshortsstopwiped

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