Bitcoin Bears Risk Stratospheric $7.2B Loss Amid Potential Comeback

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Ever since the Bitcoin price peaked at an all-time high just over $73,000, the cryptocurrency’s value has continued its wild dance, triggering a wave of pessimism among traders. A sizeable group of these traders, referred to as “bears,” have been predicting and betting on a drop in price for the progenitor of digital currencies. Their speculative bearish moves represent a significant risk if the pioneer cryptocurrency recommences its steady climb, threatening in the process staggering losses of upwards of $7.2 billion if Bitcoin bounces back to its crowning glory.

In the twisting corridors of digital information, a crypto analyst known as Ash Crypto had noted a developing trend in Bitcoin’s trajectory. His shared data pointed to a considerable volume of predictions wagering on a further downturn. As of yet, these bears appear to be on the winning side, with Bitcoin stuck below the formidable $67,000 threshold.


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Yet, should Bitcoin charge past this resistance point, the bears stand to part with a hefty sum. Cryptocurrency watchers have estimated that in stakes alone, they have $7.2 billion worth of Bitcoin shorts, investments that could evaporate if Bitcoin stages a comeback and surpasses the $74,000 marker, setting a fresh zenith in the process.

As Bitcoin momentarily rebounded past $66,000, it ignited a whirlwind of bearish activity—an anticipation that Bitcoin would continue its descent. Seemingly, their speculations hit the mark, as Bitcoin took a casual dip below $64,000.

This success has invigorated the bears, instilling confidence and spurring expectations of further decline. An intense battle unfolds comparing the risks of profits and losses, a pendulum that swings with the rise and fall of Bitcoin’s price. Analytics from Coinglass suggest that if Bitcoin were to rally back above $44,000, setting a new record, the bears could be caught off guard, nursing losses over a mammoth $10 billion.

Despite the current bearish dominion, Bitcoin’s bullish advocates are far from surrendering. Instead, they view the downward trend as an opportunity to increase their stash of Bitcoins, in hope of a resurgence that will beat previous highs, a move particularly evident among Bitcoin whales.

Insights from on-chain data watchdog, Santiment, announced that these whales, who hold between 1,000 and 10,000 Bitcoins, have scooped up a staggering 1.4% of the total Bitcoin supply in the past thirty days. Their insatiable appetite saw them invest a colossal $17.8 billion in Bitcoin amidst the recent downturn.

Following this huddle, these crypto-mammoths now possess 25.16% of all Bitcoins currently in circulation. Their swelling ranks is a testament of strong sentiment among traders, a sign identified by Santiment as “the highest crowd bullish bias since the all-time high week earlier in March.”

However, Bitcoin continues to battle for supremacy against the bearish trend holding onto the $63,000 support line. At present, its price has tumbled by 4.05% within the past day, standing at $63,600 – a figure that serves to perpetuate the intense face-off between Bitcoin bulls and bears.