Exciting! Everyone plays the free roller coaster together
30 minutes ago, the entire cryptocurrency market saw a synchronized massive drop in coin prices on a one-minute timescale, followed by some assets quickly recovering their losses.
A massive sell-off on a one-minute timescale—leveraged traders collectively experienced a free roller coaster ride
What is a short squeeze? Many people don’t understand it—let me explain briefly.
The reason a short squeeze pushes BTC higher is the relationship between the impact of futures contracts on spot.
For example, suppose someone at $70,000:
Opened a short position of 1 BTC
Your margin: 10,000 USDT, leverage: 7x
What happened in the data here?
In reality, your short position contract is essentially: borrow 1 BTC and sell it for $70,000.