Stablecoin flows hint at $50K Bitcoin after Tesla pump liquidates $500M in BTC shorts

Bitcoin (BTC) has actually extended its rally over $46,000 on Feb. 9, a day after a U.S. Securities and Exchange Commission (SEC) filing exposed that Tesla bought $1.5 billion worth of BTC. The price of Bitcoin immediately skyrocketed from around $39,000 to $45,000 throughout significant exchanges on Feb. 8 after the news started to spread.BTC/ USD 1-hour candle light chart (Bitstamp). Source: TradingviewMass Bitcoin liquidationAs the Bitcoin price initially rallied to $45,000, it triggered $500 million worth of brief positions to get liquidated.Bitcoin liquidation. Source: Bybt.com, Twitter (@cryptounfolded) The term liquidation in the Bitcoin futures market describes when the price of BTC relocations quickly in a brief period beyond the liquidation rates of futures contracts.For instance, if a trader borrows 10 times the base capital and trades a $100,000 Bitcoin position with $10,000, the position would get liquidated after a 10% rate movement.According to the information from Bybt.com, $1.34 billion worth of futures positions in the futures market were liquidated in the past 24 hours.This suggests 2 patterns; first, the derivatives market was extremely overcrowded with short-sellers. When the Tesla news broke, it caused an enormous brief capture, liquidating hundreds of millions of dollars worth of positions in a number of hours.Second, it shows that numerous investors did not expect Tesla to actually purchase Bitcoin even after Musk changed his bio to “Bitcoin” on Jan. 29, 2021. What takes place next?Meanwhile, cryptocurrency traders beware due to the incredibly high financing rates across major futures exchanges.BTC perpetual swaps moneying rates. Source: Digital Assets DataFunding rates increase when the bulk of the market are buying or yearning Bitcoin. When the financing rates are overly high, the market is susceptible to a long squeeze, which can trigger an extreme short-term drop.Nevertheless, a cryptocurrency trader called “Loma” states that the marketplace is not overconfident right now. He said that when a point comes where traders are extremely positive and do not anticipate a major drop, that is when a correction is most likely to happen. He said:” I desire us to get to that point where people begin talking about how its impossible for us to retrace 70-90% prior to I think about closing my spot $BTC positions. I keep in mind seeming like theres no other way $BTC goes back listed below $10k in 2018. We went to ~$ 3,500. Never ever say never.” Stablecoin inflows. Source: CryptoQuantMeanwhile, CryptoQuant CEO, Ki Young Ju, stressed that there is newfound buyer need as stablecoin inflows into exchanges were spotted. In the near term, this would likely serve as a catalyst for Bitcoin. He composed:” You can call me crazy, but I think well see 50k soon. Simply got another stablecoins deposit signal.” Title: Stablecoin flows tip at $50K Bitcoin after Tesla pump liquidates $500M in BTC shortsSourced From: cointelegraph.com/news/stablecoin-flows-hint-at-50k-bitcoin-after-tesla-pump-liquidates-500m-in-btc-shortsPublished Date: Tue, 09 Feb 2021 10:16:10 +0000

Source: TradingviewMass Bitcoin liquidationAs the Bitcoin price initially rallied to $45,000, it caused $500 million worth of brief positions to get liquidated.Bitcoin liquidation. Source: Bybt.com, Twitter (@cryptounfolded) The term liquidation in the Bitcoin futures market refers to when the price of BTC moves rapidly in a brief period beyond the liquidation prices of futures contracts.For instance, if a trader borrows 10 times the base capital and trades a $100,000 Bitcoin position with $10,000, the position would get liquidated after a 10% rate movement.According to the data from Bybt.com, $1.34 billion worth of futures positions in the futures market were liquidated in the past 24 hours.This indicates two patterns; first, the derivatives market was exceptionally overcrowded with short-sellers. When the Tesla news broke, it caused a massive short squeeze, liquidating hundreds of millions of dollars worth of positions in a number of hours.Second, it shows that many investors did not prepare for Tesla to actually invest in Bitcoin even after Musk changed his bio to “Bitcoin” on Jan. 29, 2021.

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Jeannine Cruz– Earnings I am known as Jeannine Cruz, I am a writer and an industrialist by profession. My age is 32 years. My aim is to gather the attention of the targeted audience without being boring and unexciting. I like to utilize the free time in writing my views and thoughts for my book lovers or readers. My most preferred articles are usually about finance and business; however, I have written various topics in my articles. I do not have a specific genre. I get very creative when I have to express myself, I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.

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