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October 4, 2022
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Elon Musk changes Twitter bio and bitcoin settles $ 420 million in shorts

When Tesla CEO Elon Musk changed his Twitter bio to “Bitcoin”, the price increased to $ 38,000.

A single change in Tesla CEO Twitter bio Elon Musk created a kind of ripple effect and ended up costing more than $ 420 million in losses to Bitcoin traders, Dice from the review site Bybt. 62% of all merchants were “sold” on the asset before their biography update.

Just a few hours ago, Musk changed his bio to a word – “Bitcoin” – endorsing digital currency for its 43.7 million Twitter followers. This led to an increase in Bitcoin prices minutes later, with the asset jumping from $ 32,000 to over $ 35,000 in just 15 minutes and to almost $ 38,000 at the time of publication.

“My GOD … everything this guy touches turns to gold.”

But not everyone made money. Traders who were “sold” in Bitcoins – those who borrowed capital to bet on falling prices to make a profit – were caught on the wrong side. The price hike ended up liquidating their positions, a term for automatic closing of positions when prices reach a predetermined level (usually causing huge losses to traders).

Nearly $ 350 million in Bitcoin shorts were paid off in the last hour, data from Bybt showed. In the meantime, $ 120 million in long positions – traders borrowing capital to bet on higher prices – have also been liquidated, probably caused by price volatility (even when prices are rising).

Binance traders have had the worst. They have lost more than $ 103 million in shorts since Musk’s move to his bio, with $ 57 million of that coming in just the first ten minutes.

The bomb caused a change in the price trend of Bitcoin, which had registered a drop in prices and a feeling of bearishness in recent days. It coincided with the expiration of the giant options for Bitcoin, one worth billions of dollars that some feared could have caused a negative pressure on Bitcoin.

But it seems that Musk alone saved the day.

Source: Decrypt

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