Elon Musk's $6,000 Bitcoin Pump Just Liquidated $420 Million of Shorts Elon Musk's $6,000 Bitcoin Pump Just Liquidated $420 Million of Shorts


Elon Musk's $6,000 Bitcoin Pump Just Liquidated $420 Million of Shorts

updated on:31 Mar 2021

A single change to Tesla CEO Elon Musk’s Twitter bio created a ripple effect of sorts and ended up costing over $420 million in losses to Bitcoin traders, data from analytics site Bybt showed. 62% of all traders were “short” the asset before his bio update.Just a few hours ago, Musk changed his bio to say just one word—“Bitcoin”—endorsing the digital currency to his 43.7 million-strong Twitter followers. That led to a surge in Bitcoin’s prices minutes afterward, with the asset jumping from the then $32,000 level to over $35,000 in the space of 15 mins, and to over $38,000 by press time.
But not everyone made money. Traders who were “short” Bitcoin—those who borrowed capital to bet on falling prices to make profits—were caught on the wrong side. The price surge ended up liquidating their positions, a term for the automatic close of positions when prices hit a predetermined level (usually causing huge losses to traders).

Nearly $350 million worth of Bitcoin shorts were liquidated in the past hour, data from Bybt showed. Meanwhile, $120 million in long positions—traders borrowing capital to bet on higher prices—was liquidated as well, likely caused by the price volatility (even as prices, ultimately, went up).
Traders on crypto exchange Binance had it the worst. They lost over $103 million in shorts since Musk’s change in bio, with $57 million of that coming in the first ten minutes alone. 
The pump caused a change in price trend for BTC, which had seen falling prices and bearish sentiment in the past few days. It coincided with a mammoth options expiry for Bitcoin, one to the tune of billions of dollars which some feared could have caused downward pressure on Bitcoin.
But it seems like Musk single-handedly saved the day.

Share this Blog with your friends


No Comments

Suggested Content

MicroStrategy Board of Directors Now Paid In Bitcoin

updated on:13 Apr 2021

The board of analytics software company MicroStrategy is now paid in Bitcoin, according to the compa

Continue Reading

Bitcoin 'Doesn’t Fulfill Basic Properties of Money': ECB Board Member

updated on:10 Apr 2021

Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB), has described Bit

Continue Reading

Bitcoin ETF Approval Will Happen: Morgan Creek’s Mark Yusko

updated on:9 Apr 2021

Morgan Creek Capital Management CEO Mark Yusko has expressed his confidence that a Bitcoin ETF will

Continue Reading

Ukrainian Officials Own $2.67 Billion in Bitcoin: Report

updated on:9 Apr 2021

Civil servants and officials in Ukraine are holding a significant amount of Bitcoin (BTC) and other

Continue Reading

JP Morgan's Jaime Dimon: Bitcoin Regulation a ‘Serious Emerging Issue’

updated on:8 Apr 2021

The legal and regulatory status of Bitcoin and other cryptocurrencies is something that needs to be

Continue Reading