Elon Musk, the billionaire chief executive of electric car-maker Tesla
, has single-handedly added thousands of dollars to the price of bitcoin in recent weeks—with other groundbreaking developments sending it still higher.
The bitcoin price, which soared toward ,000 per bitcoin this week after Tesla made the shock announcement it had bought .5 billion worth of bitcoin, is up around 350% over the last 12 months.
Now, data has revealed Musk, who has been warned by lawyers his bitcoin-boosting tweets could lead to questions from the U.S. Security and Exchange Commission, has triggered the liquidation of .2 billion worth of bitcoin price shorts in recent weeks.
This week, 2 million worth of bitcoin short positions got liquidated in the direct aftermath of the Tesla’s announcement it had added bitcoin to its books, analysts from Arcane Research showed using data from Bybt.
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This follows an earlier short-squeeze of 2 billion driven by Musk changing his Twitter bio to “#bitcoin” and tweeting: “In retrospect, it was inevitable”—sending the bitcoin price almost 20% higher in a matter of minutes.
However, despite traders getting burnt buy Musk’s ability to boost the bitcoin price, it’s thought
“I do not believe that we’ll see less shorting of bitcoin onwards,” says Arcane analyst Vetle Lunde, speaking via Twitter DM.
“Traders are prone to speculate, and many are eyeballing a potential top now. In general, traders seem very eager to take considerable risks in the market right now, evident by the violent uptick in liquidations on both the long and short side since December.”
The bitcoin price, pushed on by Tesla’s bitcoin-buy and New York-based banking giant BNY Mellon’s bitcoin support, climbed to ,000 per bitcoin on the Luxembourg-based Bitstamp exchange overnight before falling back slightly.