#binance #hype #zec #near
04/12/25 21:11 UTC-04

Bitcoin’s rise to $98,000 will liquidate $5 billion worth of short positions

Bitcoin (BTC) is recovering after a red start to the week, as institutional investment inflows accelerate, pushing the “digital gold” to $94,000 on December 4.

In addition, other optimistic signals have begun to appear: long-term holders and crypto whales are moving BTC from exchanges to cold wallets, thereby reducing selling pressure.

At the moment, short positions on Bitcoin amount to approximately $5 billion, and they may be wiped out if the asset gains another 5% and reaches $98,000, according to CoinGlass data.


Bitcoin short positions. Source: CoinGlass

This means that any sustained growth could lead to $5 billion in losses on positions, potentially triggering automatic exchange liquidations, which would occur in waves as prices spike.

These short liquidations can create strong buying pressure, forcing traders to hurry and attempt to close their positions, further intensifying the rally.

In the evening of December 4, Bitcoin’s price dropped to $91,000, confirming investor Kevin O’Leary’s claim that the upcoming Fed interest rate cut would not raise BTC’s price. Meanwhile, Polymarket users estimate the probability of such a cut at 93%.


Probability of a Fed rate cut in December. Source: Polymarket

Notably, BlackRock CEO Larry Fink pointed out that investors continue to invest in the fund at the $120,000, $100,000, and $80,000 levels. This indicates stable demand.

See also: "A quarter of all bitcoins were purchased at prices above the current level. Glassnode report"

#Bitcoin (BTC) #Analitycs

Editor: Yuliya Soroka
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