Bitcoin traders eye post-election rally as exchange outflows point to supply squeeze
Source: CoinDesk ·
From the source
Bulls are watching short positions, exchange withdrawals and key price levels for signs of a rebound after the midterms. Bitcoin traders are weighing the risk of a Democratic sweep in Tuesday's midterm elections against signs that the cryptocurrency could be setting up for a rebound, with billions of dollars in short positions and a wave of withdrawals from exchanges drawing attention. Chris Sullivan, founder and CEO of Hyperion Decimus, had flagged roughly 29,220 bitcoin-equivalent short positions on CME, worth about $2.2 billion, along with $21.99 billion in short-side taker volume over a 24-hour period. That positioning raised the prospect of a short squeeze, where rising prices force traders betting against bitcoin to buy back their positions, adding to the rally. But the recent Binance hack has made those figures harder to interpret. Sullivan said large amounts of bitcoin have since been withdrawn from exchanges and moved into cold storage, where investors hold their assets…
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