Bitcoin’s realized cap has reached a record $1 trillion, signalling growing investor conviction in BTC. With nearly $2 billion in short positions vulnerable near the $120K level, a short squeeze could rapidly accelerate any upward move, turning calm trading into sharp volatility.
Record realized cap: $1 trillion confirms inflows and longer-term holdings.
Nearly $2 billion in shorts sit near $120K, creating a high-risk liquidation zone.
Active supply has cooled, historically preceding sudden volatility and potential rallies.
Meta description: Bitcoin realized cap hits $1 trillion; prepare for a potential short squeeze as $2B in shorts could fuel a rapid BTC rally — read analysis and takeaways.
What is Bitcoin’s realized cap milestone?
Bitcoin’s realized cap is a market valuation metric that sums BTC value at the price when each coin last moved; it just hit $1 trillion, showing significant capital locked into long-term holdings. This milestone suggests increased investor confidence and deeper market participation at higher valuations.
How could $2 billion in short positions influence Bitcoin’s next move?
Nearly $2 billion of short exposure concentrated near $120K creates a liquidation risk. If BTC approaches that level, forced buy-ins could trigger a short squeeze, rapidly compressing supply and amplifying price moves. Historical patterns show large clustered liquidations often precede sharp rallies.
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Bitcoin’s realized cap has hit a record $1 trillion, while billions in short positions could trigger a sharp rally if BTC climbs toward $120K.
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Source: https://en.coinotag.com/bitcoins-realized-cap-tops-1-trillion-as-120k-short-liquidations-may-spark-rally/