Cryptocurrency traders have seen $550 million U.S. in Bitcoin (BTC) short bets liquidated in the past 24 hours as prices for digital assets rallied alongside stocks.
Bitcoin has risen about 4% in the past day to trade right around $71,000 U.S.
That move led traders who had been betting on further declines in Bitcoin to cover their short bets by purchasing BTC, wiping out more than half a billion dollars in the process.
Bitcoin and other cryptocurrencies, such as Ethereum (ETH) and Solana (SOL), rose sharply alongside stocks on March 23 amid signs of deescalation in the U.S. war with Iran.
Bitcoin has also climbed higher as crude oil prices reverse lower, dropping more than 10% on March 23 to trade back below $100 U.S. per barrel.
The quick rally ended up squeezing short traders who had been betting that Bitcoin’s price would fall below $65,000 U.S.
While Bitcoin back above $70,000 U.S. is positive, analysts say that the price will need to reach and stay above the key support level of $75,000 U.S. for a full recovery to begin.
