Morgan Stanley: BTC may be in the process of a short squeeze, with short positions closing to drive prices up
Odaily News Odaily Planet Japan News: Morgan Stanleys cryptocurrency strategy team pointed out that when traders bet on the decline of Bitcoin with leveraged tools, the continued rise in prices will put their margin accounts at risk of being liquidated. At this time, they must urgently repurchase Bitcoin from the market to close their positions. This concentrated repurchase behavior will in turn further push up prices, forming a positive feedback loop of price increase-short position closing-price increase again.
Coinglass data shows that long orders reached US$5.762 billion in the past hour, up 52.94%, but the current short position still accounts for 48%. Morgan Stanley said that most shorts are concentrated at defensive points below US$115,000. If the price continues to stabilize at US$117,000, it may trigger a new round of short liquidation of US$500 million, further strengthening the upward momentum.
You may also like

Arm Chips In-House: Rewire News Brief

IOSG: Stablecoin Reshaping Asia Cross-Border Payments? Strategic Landscape and Investment Opportunities Analysis

\$73 Billion OpenAI Aims for IPO: Drops Sora, Snubs Disney, Puts Microsoft in Risk Factors

The Chip Industry's Most Secure Middleman Just Took a Very Risky Turn

CZ's Latest Interview: My Experience is Replicable, Writing a Book to Inspire Young Entrepreneurs

Morning News | Invesco acquires a $900 million on-chain fund from Superstate; ParaFi has raised $125 million for its new fund; Solana Foundation launches developer platform SDP

What is the background of this new fund that the two major prediction market platforms have rarely joined forces to create?

SIREN, another leveraged scam

Token has become extremely popular, and the blockchain is very sad

Tether's major shareholder invests £12 million to support the "British version of Trump" in the cryptocurrency sector

Huang Renxun's Latest Podcast: Will NVIDIA Reach $1 Trillion? Will the Number of Programmers Increase Instead of Decrease? How to Deal with AI Anxiety?

Besides Resolv Hack, This DeFi Vulnerability Type Has Occurred Four Times

Trump Cries Peace, $1.5 Billion Dash | Rewire News Evening Brief

From x402 to MPP: Cloudflare's crucial vote, will it go to Coinbase or Stripe?

BlackRock CEO issues annual open letter: The wave of tokenization has arrived, and we will lead this trend

When Backpack backstabs the community

When gold is no longer a safe haven, and Bitcoin continues to panic

