According to relevant data, the price of Bitcoin was $13,710 at the time of publication, after breaking through $14,000. With the sharp rise in bitcoin prices, futures shorts in the encrypted futures market were burst.
Speculators who watched Bitcoin in the market were forced to close their positions at twice the price after two months of bitcoin rose. The pressure is likely to continue, as the short ratio is still at historically high.
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"Higher prices bring more money, more hedging, more shorts," said Bloomberg intelligence analyst Mike McGlone. “This suggests that bids below market are more likely to go higher.”
Data from the CME showed that futures yields peaked at the end of last year and steadily declined as the positions in the first quarter rose. The reduction in the net long position seems to be driven by more and more short-term futures positions, with a total of 4431 short contracts, which is at an all-time high.
Although speculators still look at multi-bitcoin futures, the recent increase in new short positions may push up a new round of short-covering demand while pushing up positions.
Naeem Aslam, chief market analyst at Think Markets UK in London, said, “This is a clear sign that the price will disappoint the shorts. Now the bitcoin’s upward momentum is very strong, and we do think the price is likely to be in the next It reached a level of $15,000 in a few weeks."
According to the push data, Bitcoin rose more than 20% in 24 hours, and broke through $14,000 for the first time since January 2018. Other major cryptocurrencies, including Ethereum and Litecoin, also rose, and the Bloomberg Galaxy Crypto index rose 10.3%.
The industry is experiencing a second revival as mainstream institutions embrace cryptocurrencies and their underlying blockchain technology more widely. Facebook’s plans to launch its own cryptocurrency with partners including Visa and Uber have pushed bitcoin prices higher. Bitumin, the world's largest producer of cryptocurrency miners, is also preparing for an initial public offering in the United States.
Mati Greenspan, senior market analyst at trading platform eToro, wrote in a recent report: "Bitcoin currently dominates the encryption market. After a long winter of 2018 encryption, cryptocurrency has become a performance since 2019. The best asset class, and this is just the beginning of the spring." (by pushing)