Short sellers are presently having their fingers burnt, with Bitcoin bulls fighting to reclaim the $35k mark amid the ongoing crypto market volatility.
Recent data shows about 33,304 traders were liquidated with the largest liquidation order occurring at Bitmex-BTC valued at $6.7 million.
What is shorting a crypto asset?
Shorting a crypto asset in principle means the investor’s main objective is to sell the digital asset at a high price and buy it back at a lower price.
Unlike most investors who like to buy cheap and sell at a premium, short-sellers adapt the order of this mechanism by aiming to sell high and buy low. This process is permitted in the Crypto derivative market.
Outlook of Bitcoin and other major crypto assets
At press time, the global crypto market cap value stood at $1.44 trillion, posting 3.43% for the day with the daily total crypto market volume ranging around $61 billion, which makes a 0.60% increase.
Bitcoin’s price is currently $34,750.04 with the pioneer crypto-asset dominance currently at about 45.4%.
Though market pundits, including strategists at JPMorgan, the world’s most valuable bank, anticipate a number of investors will sell at least a portion of their Grayscale Bitcoin holdings after the July unlocking period, the growing adoption of the pioneer crypto has kept Bitcoin at least above the $30,000 price levels.
In addition, prices of major altcoins like Ethereum, Dfinity, Cardano, Solana all surged on the FTX exchange amid favourable reports revealing Skybridge Capital will launch a private Ethereum fund to complement its $25 million Bitcoin fund.
