Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Morgan Stanley: BTC May Be Undergoing a Short Squeeze, with Short Covering Driving Prices Higher

Morgan Stanley: BTC May Be Undergoing a Short Squeeze, with Short Covering Driving Prices Higher

星球日报星球日报2025/07/11 06:59
Show original

Odaily Planet Daily reported that Morgan Stanley's cryptocurrency strategy team pointed out that when traders use leveraged instruments to bet on a decline in Bitcoin, a sustained price increase puts their margin accounts at risk of liquidation. In such cases, they are forced to urgently buy back Bitcoin from the market to close their positions. This concentrated buyback activity, in turn, further drives up the price, creating a positive feedback loop of "price increase—short covering—further price increase."
According to Coinglass data, in the past hour, long positions reached $5.762 billion, up 52.94%. However, short positions still account for 48% of the market. Morgan Stanley noted that most short positions are concentrated at defensive levels below $115,000. If the price remains steady above $117,000, it could trigger a new round of short covering worth $500 million, further strengthening the upward momentum.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!