he Bitcoin price declined 3.33% to $68,507 amid broader macroeconomic uncertainty triggered by the latest US jobs report. This report showed higher-than-expected job growth in May, stirring inflation fears. The dip wiped out over $400 million in crypto positions according to CoinGlass. Of that, $56.71 million were long Bitcoin positions.
Traders Anticipate Further Declines
In the days before the dip, Bitcoin had been trading between $70,000 to $71,662. However, many traders now believe the price will not swiftly rebound. Data from futures markets shows traders have heavily shorted Bitcoin recently. If the price returned to just $71K, around $1.38 billion worth of short positions would liquidate. This shows significant bearish sentiment has taken hold.
How Quickly Sentiment Can Shift
Just a week ago, traders were hopeful Bitcoin could challenge its all-time high above $73,000. Now, they expect further declines. However, as we've seen many times before in cryptocurrency markets, conditions can change rapidly. Increased inflation fears or positive geopolitical developments could see sentiment turn bullish. A rebound to $71K would demonstrate how quickly over $1 billion in short trades could be wiped out as market dynamics shift. Overall, increased macro volatility has amplified price fluctuations and accentuated traders' short-term bearish outlook. But breakthroughs on any front could produce a sharp reversal.
Macro uncertainty has led to increased BTC shorting. However, if the Bitcoin price can return to its June 6 level of $71K, billions in shorts could face liquidation, showing how quickly market conditions can change. Ongoing volatility and changing sentiment mean the crypto market remains highly unpredictable.
