Monster $5 billion Bitcoin short squeeze alert

Bitcoin (BTC) is recovering after a somewhat disappointing start to the week as institutional inflows begin to accelerate once again, pushing “digital gold” back to $93,000 on Thursday, December 4.

Other bullish signals have also started to emerge, with long-term holders and whales moving BTC from exchanges to cold wallets and reducing selling pressure in the process.

As BTC continues its resurgence, roughly $5 billion in Bitcoin short positions are still sitting on the books and could be wiped out if the asset bounces back another 5% and makes a run back to $98,000, as per data reviewed by Finbold from CoinGlass on December 4.

CoinGlass Bitcoin short positions. Source: CoinGlassBitcoin short positions. Source: CoinGlassPut simply, around $5 billion is currently positioned against the cryptocurrency, with higher liquidation concentrations stretching toward the $98,000 region

This means that any sustained upward move could turn these positions into losses, potentially triggering automatic liquidations on exchanges, which would come in waves following price upswings.

These short liquidations can generate a lot of buying pressure by forcing traders to scramble and try to cover their positions, intensifying the rally further.

Bitcoin price action

As mentioned, with Bitcoin holding above $93,000 at the time of writing, mostly lifted by optimism that the upcoming Federal Open Market Committee (FOMC) meeting will see another rate cut. In fact, traders now believe there is a 93% chance of it happening, according to crypto-based prediction platform Polymarket.

PolymarketOdds of a December Fed rate cut. Source: Polymarket**PolymarketInstitutional flows have also started to accelerate again. Indeed, U.S. spot Bitcoin ETFs now control 1.36 million BTC, roughly 7% of total supply. BlackRock, naturally, dominates, holding around 3.9% alone

At the 2025 DealBook Summit, held on December 3 at Jazz at Lincoln Center in New York City, BlackRock CEO Larry Fink described Bitcoin as an “asset of fear”, pointing to its role as a hedge:

“Bitcoin is an asset of fear…. So you own Bitcoin because you’re frightened of your physical security. You own it because you’re frightened of your financial security. The long-term fundamental reason you own it is because of debasement of financial assets. Because of deficits,” Fink said.

“Bitcoin is an asset of fear…. So you own Bitcoin because you’re frightened of your physical security. You own it because you’re frightened of your financial security. The long-term fundamental reason you own it is because of debasement of financial assets. Because of deficits,” Fink said.

*“Bitcoin is an asset of fear…. So you own Bitcoin because you’re frightened of your physical security. You own it because you’re frightened of your financial security. The long-term fundamental reason you own it is because of debasement of financial assets. Because of deficits,”*Nonetheless, Fink noted investors continue to buy into the fund at $120,000, $100,000, and $80,000 levels, which, just like net values, suggests deeper institutional engagement. Accordingly, Bitcoin’s next major move this cycle is likely going to depend on institutional demand.

Featured image via Shutterstock

Featured image via ShutterstockFeatured image via Shutterstock