Bitcoin, the big player in the cryptocurrency world, is on the rise again. And for those who were betting on its price to drop, it’s not good news.

Short Squeeze: $100 Million Loss

In the last day alone, almost $100 million in short positions for all cryptocurrencies have been wiped out. That’s a big hit. The data from CoinGlass shows that a whopping $99 million has gone down the drain.

BTC Takes the Biggest Hit

Among all the cryptocurrencies, Bitcoin took the hardest hit. Short positions on Bitcoin alone lost nearly $36 million in the last 24 hours. And in just the last four hours, almost $22 million worth of short positions on Bitcoin vanished into thin air.

Long Positions Not Spared

While long positions didn’t escape unscathed, it’s the traders behind short positions who are feeling the most pain. CoinGlass data reveals that approximately $44 million worth of long positions across all cryptocurrencies were liquidated in the past day.

Understanding Short and Long Positions

Short positions are taken by traders who bet that the price of an asset will drop in the future. If their prediction is wrong and the short position gets liquidated, they lose the bet, and their position is closed. On the other hand, long positions are bets that the price of an asset will go up.

Bitcoin’s Price Movement

Bitcoin’s price has gone up by about 5% in the last 24 hours, reaching $61,911, according to CoinGecko. It even briefly crossed the $62,000 mark on Friday morning. Bitcoin had been struggling lately and at one point dropped below $57,000 per coin this week.

Recent Highs and Lows

It’s worth noting that Bitcoin’s recent performance hasn’t been all smooth sailing. It’s a far cry from its new March all-time high of nearly $74,000. And it’s even lower than its previous record in 2021, which stood at $69,044.

Factors Behind Bitcoin’s Rollercoaster Ride

Bitcoin and the wider crypto market have been under pressure lately. The Federal Reserve’s hint that it won’t rush to cut interest rates this week didn’t help. Also, geopolitical tensions, such as conflicts in the Middle East, have made investments like Bitcoin less appealing to some investors. This led to outflows from newly approved spot Bitcoin exchange-traded funds (ETFs).

The Twist: Unemployment Report’s Impact

However, there’s a twist in the tale. Today, the U.S. government released its Nonfarm Payrolls report, which showed a higher-than-expected unemployment rate for April. This was seen by some crypto traders as a positive sign. Why? Because high unemployment increases the likelihood of the Fed considering lowering interest rates. And lower interest rates usually make cryptocurrencies more attractive to investors.