When Tesla Buys Bitcoin, $500 Million BTC Short Is Subject to Liquidation

Bitcoin price is at a new all-time high above $46k, seen from cointracker on February 8.

With this increase, it becomes an annual event for Short traders on BTC. But data from Coinalyze shows that $500 million short has been liquidated on various centralized exchanges.

The $500 million liquidation was spread across leading derivatives and margin support exchanges, notably on FTX and BitMex.

This exchange supports a high level of leverage. Coupled with the volatile nature of Bitcoin and cryptocurrencies, this can be a very risky combination for traders to place bets on highly leveraged positions.

Therefore, judging by this liquidation – minutes after Tesla’s 10,000-thousand submission of a $1.5 billion investment in BTC, it seems most traders are betting against the Bitcoin price.

Over the past few weeks, Bitcoin has remained as one of the best coins. As most are now considering Bitcoin for a strategic investment, citing its superior properties, including acting as a hedge against inflation.

Last week, Michael Saylor—CEO of MicroStrategy, citing NYDIG co-founder Ross Stevens, ‘estimated institutions funneling $25 billion into crypto and Bitcoin by the end of the year.

His comments were during a virtual Bitcoin for Corporations event, hosted by MicroStrategy, attended by tech companies, including SpaceX, Pfizer, and others.

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