Global digital asset markets did not see much price movement as the long-awaited US CPI data was released. Bitcoin (BTC) resumed trading above the $20,000 price level. However, one cryptocurrency analyst says it will soon see a big short squeeze.
Is the Big Short squeeze looming?
CryptoQuant CEO Ki Young Ju mentioned in a tweet that traders have been shorting bitcoin since as early as 2020. This led them to liquidate in the $10- $20,000 price range before the parabolic bull market started.
At the time, he notes, only 10 per cent of hourly market to market orders came from short clearing. Meanwhile, it is now just 1%.
More than 55,000 traders, according to Coinglass. Liquidations of approximately $193 million were registered during the same period. More than $53 million worth of BTC has been liquidated.
Bitcoin prices have risen more than 5% in the past 24 hours. Its average trading price at press time was $20,907. However, BTC's 24-hour trading volume rose 10 per cent to $38bn.
Meanwhile, Young Ju clarified that the parabolic bull market will not start. He thinks it seems to be near the bottom. But investors and traders must wait for such a short squeeze to occur. He added that this could happen within months or even years.
Institutional investors selling Bitcoin?
CryptoQuant published a blog post on the general market sentiment in the US cash and futures markets. It highlighted that most institutional investor market makers and brokers are using the Coinbase cryptocurrency exchange.
BTC prices trade on Coinbase at a discount to other exchanges. That suggests these American institutional investors are selling. However, bullish sentiment among future market investors is surging. According to the blog, Taker buys more than Taker sells.