Cryptocurrency "Short Seller Exodus": When Everyone is Shorting, the Market Starts to "Self-ignite"!
#加密市场回调
Don't think you can predict the market; the script of the cryptocurrency world is something even the writers can't come up with!
Recently, there has been an interesting phenomenon in the cryptocurrency circle: Everyone is shorting, while the bulls have disappeared, and the funding rates have turned negative. At this point, a question arises: Contracts earn money from the counterparties, but if there are no counterparties, who do the shorts earn money from? Is it just empty air?
As a result, over the weekend, Trump made a loud statement, and various cryptocurrencies surged directly by 20% or even more! Do you think this is the power of Trump's "rhetoric"? No, this is actually the "chain reaction of short sellers' liquidation" fueling the market! Normally, when Trump makes a statement, it might only rise by 5%, but the shorts had accumulated 4 months of "fuel," which was suddenly ignited, causing the market to directly "explode"!
Imagine, hundreds of billions in short positions, like a pile of dry firewood, just waiting for a spark. Trump's tweet was that spark, and the shorts instantly turned into "fuel," propelling the market to soar!
So, when everyone thinks "shorting is guaranteed profit," the market will always surprise you. The shorts thought they were "harvesting," but instead, they became the "fuel."
Summary:
When everyone is shorting, the market may "self-ignite."
The liquidation of shorts is the "fuel" for the bulls.
There is no strategy in the cryptocurrency world that guarantees profit; there are only unexpectedly surprising plots!