Bitcoin Shorts Cluster at $343M, Squeeze Looms as Traders Adjust
Four traders have taken on $343 million in Bitcoin short positions, with a total of 5,375 BTC held at various exchange levels. The combined liquidation prices for these positions range from $64,101 to $66,030, clustering closely above the current spot price. One trader has already adjusted their position, cutting 250 BTC from a $114 million short and taking a loss of around $33,400.
The traders' forced-exit levels are so close together that they could trigger a 'squeeze', where an exchange's attempt to liquidate a short forces additional buying into the market. This could lead to a price increase, forcing even more buying as the next tier of triggers is hit.
Bitcoin's current price is around $64,000, and its recent recovery from the July inflation report has not provided clear direction for traders. The asset remains below its October record high, despite inflows into U.S.-based spot exchange-traded funds.