Bitcoin’s Ascent to $21,000 Leaves Short Traders Reeling: What’s Next for the Market?

Ethereum Short Traders Also Caught Off Guard by Cryptocurrency Market Surge

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The rise of bitcoin (BTC) to USD 21,000 took by surprise many traders who were betting with futures contracts that its price would fall in the coming days. This practice, known as “short trading,” led to money losses not seen for 17 months.

BTC short futures settlements in the last 24 hours were the highest since August 2021, according to data collected from Glassnode. Against this backdrop, “bitcoin is creating doubts for the bears and filling the bulls with euphoria,” expressed trader CryptoTommey about the bullish sentiment generated in part of the community.

In the last 24 hours, short settlements in the cryptocurrency market were USD 473 million, according to blockchain explorer Coinglass. Of these, 29% is solely bitcoin for USD 138 million. And a larger percentage, 42%, is of Ethereum (ETH) for USD 201 million.

This reflects that the rise of bitcoin not only caught its futures traders off guard, but also those of other cryptocurrencies such as ETH. Meanwhile, there are opposing predictions about what lies ahead for the market after the gradual rise it has embarked on this week.

Soome analysts expect that, with this rise, bitcoin could continue to USD 25,000. But others warn that there is still no evidence that it has yet bottomed out in this bearish cycle it has been in for more than a year. Therefore, we will have to gradually follow how it continues to unfold.

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