Bitcoin’ jump to $44,000 unwound an increasing number of short positions, data from Coinglass showed. The token has driven the crypto market higher amid growing adoption through the Russia-Ukraine conflict.
Is a Bitcoin short Squeeze incoming?
Data from Coinglass showed about $68 million short positions in the world’s largest cryptocurrency had been liquidated in the past 24 hours. Sentiment towards crypto improved in the past week as Western sanctions and wartime disruptions boosted adoption in Ukraine and Russia.
Long positions made up 54% of total positioning on bitcoin in the last 24 hours, while positioning in the broader market was closer to 50/50. Still, long positions on Bitcoin have been steadily building this week.
Bitcoin and other tokens raced past broader financial markets in the past week. While the token is up about 12%, the S&P 500 stock index has only added about 1.9% from last Wednesday.
Total crypto market capitalization crossed the $2 trillion mark for the first time in over two weeks, while the fear and greed index improved to neutral from extreme fear.
A total $176 million crypto shorts liquidated
Among altcoins, Ethereum’s jump to near $3000 saw nearly $43 million shorts liquidated in the past 24 hours. Luna and SOL also had some of the largest short positions wiped.
On the broader front, a total $176 million of short positions were liquidated by crypto’s rally in the last 24 hours. The largest single liquidation order happened on Okex, and was a btc-tether swap valued at $8 million.
Okex also had the highest concentration of short positions among major crypto exchanges, at about 53%.
Is Bitcoin the safest haven?
The latest rally has also fueled renewed speculation over Bitcoin’s potential role as a safe-haven asset. While the currency had faltered in the initial stages of the Russian invasion, it found its ground and has now even raced past gold in the past week.
Shorts RIP. This time there most definitively is a major safe haven bid behind bitcoin. This is not just a simple short squeeze.
— Alex Krüger (@krugermacro) February 28, 2022
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