Analysis: "Bitcoin sees a surge in short positions... while Ethereum is dominated by longs"
Summary
- Santiment, an on-chain data analytics firm, recently reported a significant increase in Bitcoin short positions.
- It was stated that an overheated Bitcoin short position may increase the likelihood of a short squeeze.
- In contrast, Ethereum long positions are somewhat dominant, but limitations remain due to price linkage with Bitcoin.
In the virtual asset (cryptocurrency) market, Bitcoin (BTC) is recording a negative funding rate while Ethereum (ETH) is in the positive, showing a contrasting trend.
According to a post on X by the on-chain data analytics firm Santiment on the 26th (local time), traders have increased their short positions as Bitcoin shows signs of recovery. Santiment stated, "Short positions in Bitcoin have risen significantly compared to long positions," adding, "If short positions become overheated, there is a higher possibility of a temporary rebound—what's known as a short squeeze."
On the other hand, currently long positions hold a slight edge in Ethereum. Santiment commented, "Although longs are slightly dominant in Ethereum, its potential for a significant independent rise without Bitcoin is limited," suggesting that Ethereum's price remains correlated with that of Bitcoin.
Meanwhile, at 13:20 on this day, Bitcoin is trading at $107,781.08, up 1.51% from the previous day in Binance Tether (USDT) market terms. Ethereum is trading at $2,476.90 on the Binance Tether (USDT) market, also up 1.51% from the previous day.
Heecheol Yang
heecheol@bloomingbit.ioHello, I'm a reporter at bloomingbit
