When Tesla CEO Elon Musk changed his Twitter bio to “Bitcoin”, its price jumped to $ 38,000, and major short position liquidations were seen.
A single change to the Twitter biography of Tesla CEO Elon Musk has had various ripple effects and caused over $ 420 million in losses to Bitcoin traders. 62% of all traders were in a position that BTC would go down before the bio update.
Just a few hours ago, Musk changed his biography to endorse a single word – “Bitcoin” – his digital currency to 43.7 million strong Twitter followers. This led to a surge in Bitcoin’s prices minutes later, the asset surging from the then $ 32,000 level to over $ 35,000 in 15 minutes and then to over $ 38,000.
But not everyone made money. Bitcoin traders in the “short position” – those who open positions at falling prices to make a profit – got caught on the wrong side. When prices reach a predetermined level with the rapid price increase (often causing huge losses for traders) positions were automatically closed and liquidated.
Bitcoin short positions worth about $ 350 million have been liquidated last hour, according to Bybt data. Meanwhile, the $ 120 million in long positions – traders borrowing capital to open positions at higher prices – was probably liquidated due to price volatility (although prices eventually went up).
Traders on the crypto exchange Binance had the worst. They’ve lost more than $ 103 million since Musk’s change in his biography, and $ 57 million of that came in just the first ten minutes.
The pump caused a change in price trend for Bitcoin, which has seen falling prices and a bearish sentiment over the past few days. It coincided with the end of a huge option for Bitcoin; This was a multi-billion dollar fix that some feared could cause downward pressure on Bitcoin.
But Musk alone seems to have saved the day.