Editor's PiCK
Ethereum short position worth $5 billion... "High chance of short squeeze"
Summary
- The founder of LD Capital revealed that a short position of about $5 billion is currently stacked against Ethereum (ETH).
- Founder Jack Lee predicted that, as a result, Ethereum could surge to $4,000 amid a likely short squeeze.
- He noted that due to pro-digital asset policies globally, Ethereum could become a prime target for traditional capital inflows.
A large Ethereum (ETH) short position has formed, sparking claims that a sharp surge could result from a short squeeze.
On the 11th (local time), Jack Lee, the founder of LD Capital, stated on X (formerly Twitter), "The reason for the bullish outlook on Ethereum is simple," adding, "Currently, there are $1.3 billion worth of short positions on the Chicago Mercantile Exchange (CME), $1 billion on Aave (AAVE), and at least $3 billion in total across all exchanges."
He said, "A combined $5 billion worth of short positions significantly increases the probability of a short squeeze," and added, "Ethereum could soar to $4,000." He continued, "We have purchased 100,000 Ethereum options according to this scenario."
He also described the pro-crypto policies of various countries as positive. Jack Lee said, "With pro-digital asset policies, the Ethereum ecosystem is likely to become the top priority asset for traditional capital inflows," and added, "The Ethereum ecosystem is home to the best projects."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
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