While bitcoin has crossed a new all-time price high in 2021, traders are leery toward shorting the crypto asset. Data from Bitfinex shows the number of short contracts has been extremely low in comparison to the total number of shorts in mid-March 2020. On Saturday, January 2, 2021, when the price of bitcoin surpassed $33k, over 100 million dollars in short positions were liquidated in a matter of minutes.
On Saturday, during the afternoon trading sessions (EST), bitcoin (BTC) reached $33,333 per unit. The price is a lifetime high, in terms of fiat value, during the course of the crypto asset’s 12-year existence. Bitcoin’s value has also increased a great deal since March 12, 2020, otherwise known as ‘Black Thursday.’ Since that day, the price of BTC has risen over 777% outshining nearly every asset under the sun, besides a few other crypto assets.
Liquidated short on XBTUSD: Buy 10,000,000 @ 30864 🏅🏆💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯 ~ I’m shocked, shocked to find that gambling is going on in here!
— REKT (@BXRekt) January 2, 2021
Since bitcoin has been rising immensely in value, traders have not been willing to short the crypto asset since mid-March. For instance, on the trading exchange Bitfinex, the number of short contracts have dropped 77% since mid-March 2020. This action can be seen across a myriad of other cryptocurrency exchanges including Bitmex, Bybit, and other platforms that offer margin and leverage trades. Shorts contracts across the board have dropped considerably.
#bitcoin shorters be like
OH NO OH NO OH NO NO NO NO NO
— CryptoKid (@mancryptodude) January 2, 2021
Despite the lower activity of short contracts on…