This Is How Much Those Who Shorted June's Bitcoin Dip Have Earned

Bitcoin (CRYPTO: BTC) experienced a severe flash crash this past month, causing it to drop over 70% below its all-time high.

Following Terra’s (CRYPTO: LUNA) black-swan event, CPI data on inflation, and the US Federal Reserve hiking interest rates, turbulent market conditions have continued.

While there are numerous investors who profit off Bitcoin by holding it, swing trading it, or longing it, there is a major category of Bitcoin bears, who profit off shorting it. Bitcoin is currently trading at $20,587, down from its all-time high of over $68,000.

Traders who shorted Bitcoin on May 31 with an entry price of $32,095 and exited at $20,587, would see a return on equity with a profit percentage of over 35%.

Also Read: If You Invested $1,000 In Bitcoin When Michael Saylor Said To Mortgage Your House, Here's How Much You're Down

While Bitcoin is relatively more stable, other altcoins experience much larger price volatility, especially during market crashes. Thus, traders who shorted the cryptocurrency market in the past month made significantly large profits, posing liquidation risks to large-scale long positions.

As market uncertainty continues, it is imperative for investors and traders to proceed with caution, only risking the capital that they can afford to lose.