Bitcoin (BTC) is recovering from a red start to the week as institutional investment inflows accelerate, pushing the «digital gold» to $94,000 on December 4.
In addition, other optimistic signals have begun to emerge: long-term holders and crypto whales transfer BTC from exchanges to cold wallets, thereby reducing selling pressure.
Short positions in Bitcoin currently amount to approximately $5 billion, and they could be liquidated if the asset gains another 5% to reach $98,000, according to CoinGlass data.
Bitcoin Shorts. Source: CoinGlass
This means that any sustained rise could result in $5 billion in losses on positions, potentially triggering automatic liquidations on exchanges that would occur in waves as prices surge.
These short liquidations can create intense buying pressure, forcing traders to rush in and try to close their positions, further strengthening the rally.
On the evening of December 4, the price of Bitcoin fell to $91,000, confirming investor Kevin O’Leary’s assertion that the upcoming Fed interest rate cut will not increase the price of BTCMeanwhile, users polymarket They believe that the probability of such a reduction is 93%.
Probability of a Fed rate cut in December. Source: polymarket
Notably, BlackRock CEO Larry Fink noted that investors continue to invest in the fund at the $120,000, $100,000, and $80,000 levels. This indicates stable demand.