Hedge funds have amassed record short positions on Bitcoin, with significant implications for the cryptocurrency market. The total value of short positions has reached $12 billion, with $4.3 billion set to be liquidated if Bitcoin's price exceeds $73,000. The current price of Bitcoin is around $71,000, and a quick rebound to this level would result in the liquidation of over $1.41 billion in short positions. This surge in shorting activity is partly attributed to basis trading related to Bitcoin ETFs. Despite the bearish stance, this strategy may be part of a broader risk-hedging approach by Wall Street firms. The CME Group has also reported record shorting amid recent price fluctuations.
Leveraged Funds Build Largest Bitcoin $BTC Short Position in History 🚨 https://t.co/qlwFXFXVyO
There are $12 billion worth of #bitcoin shorts up to $74,000. Wall Street firms are short big time. This is not necessarily a bearish play by Wall Street, by the way. It's likely part of the fiat games played to hedge risk and gain a premium spread. It involves selling #btc… https://t.co/nBesBfyrhP
$4.3 billion in shorts will be liquidated if #Bitcoin moves above $73,000 Good luck bears
Hedge funds are shorting #Bitcoin like never before. By shorting futures and snapping up ETF spots, they're setting the stage for a price explosion when those shorts close. https://t.co/JJCnxAe3bt
#Bitcoin Hedge Fund Shorts Reach New High Amid Price Fluctuations https://t.co/DQukunbfGP
Record hedge fund shorting of #Bitcoin on the @CMEGroup https://t.co/Y5lp1gXcTt
[COINGLASS] A quick rebound of #Bitcoin to its June 6 price of $71,000+ would result in the liquidation of over 1.41 billion dollars in short positions https://t.co/y7xW6ZehHq
Interest chart showing record short position by hedge funds. Although some of the increase is likely related to basis trading re Bitcoin ETFs, an unexpected catalyst can spark a massive short covering https://t.co/6zuLLQsZYG