Bitcoin climbed back above $80,000 on Nov. 4 as short sellers lost $378 million in one hour. The rally followed several sessions of outflows from U.S. spot Bitcoin ETFs, and Bitfinex flags possible selling pressure higher up.
Bitcoin climbed back above $80,000 on Nov. 4, and traders who bet against it paid for the move. Crypto shorts worth $378.09 million were liquidated in one hour, or 81% of forced closures, according to CoinGlass data.
The price traded around $80,470, up 4.1% over 24 hours. Ethereum moved faster and gained 6.1% on the day.
Bitcoin rebounds from a seven-week low after the midterms
Only 12 hours earlier, Bitcoin had dropped to a seven-week low of $75,600 after the U.S. midterm elections. CryptoPotato called the removal of uncertainty the most likely reason for the turnaround. Wall Street also opened well in the green.
Liquidations happen when an exchange closes a leveraged position because the trader lacks enough collateral to hold it. Over 24 hours, 117,560 traders faced liquidation, with total forced closures reaching $914.84 million.
ETF outflows came first
Before the rebound, funds were leaving. According to Bitfinex, U.S. spot Bitcoin ETFs recorded $1.16 billion in outflows across three trading sessions, their largest such withdrawal since late June. BlackRock's IBIT accounted for $405.3 million on Nov. 2, which Bitfinex described as the fund's biggest daily withdrawal this year.
Bitfinex also named a test for renewed demand: three consecutive days of inflows comparable in size to the recent withdrawals.
Bitfinex flags sellers near $84,000
In its Nov. 2 report, Bitfinex identified 2.26 million BTC acquired between $81,000 and $85,500. The exchange said holders approaching their purchase prices could create selling pressure during a recovery.
It highlighted $84,000–$85,500 as an area where sellers could look to exit around breakeven, without forecasting that Bitcoin would necessarily reach it.
Sources: crypto.news, CryptoPotato
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