Bitcoin Faces a Storm: BlackRock's ETF May Trigger a Short Squeeze

Bitcoin stands on the edge of a storm, with over $3 billion in short positions looming like dark clouds below $100,000. With BlackRock's IBIT ETF making a major entrance, this storm may soon erupt. BlackRock holds over 600,000 bitcoins, becoming a dominant force in the market, and since April 21, the IBIT ETF has attracted nearly $4 billion in inflows, pushing Bitcoin to break through the $85,000 ceiling.

Institutional investors are also increasing their stakes; for example, Brown University recently invested $4.9 million in IBIT, further proving institutional confidence in Bitcoin. BlackRock's ETF holds a dominant position in the market, with its bitcoins accounting for about 5.82% of the global supply. This imbalance suggests that the market's direction is firmly controlled by one company.

Despite the excitement in the market, the resistance level at $96,000 puts significant pressure on Bitcoin's price breakout. Short positions dominate the market, with 63% of positions leaning downward. If Bitcoin breaks through the resistance level, FOMO (fear of missing out) sentiment could spread rapidly, driving the price up. A short squeeze could potentially push Bitcoin to $100,000 or even higher. Right now, all eyes are on this critical breakout point.