At last, the long-awaited short squeeze has begun to grace Bitcoin (BTC). For those unaware, over the past three or so weeks, the amount of money shorting BTC on platforms like Bitfinex and BitMEX has exploded, as the news regarding Tether and Bitfinex’s potential insolvency and the Binance hack have been seen as negative catalysts by some.
In fact, there was over 30,000 BTC worth of capital (margin included) in short positions on Bitfinex just hours ago. Yet, as BTC has continued to push higher, moving past $6,400, $6,800, $7,200, and $7,300 in rapid succession, shorts have begun to lose their shirts. According to a recent analysis by Willy Woo, a prominent researcher, short positions on the two aforementioned platforms are being liquidated left and right.