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Short Squeeze Catapults Price of Bitcoin Past $7,600

Just hours after short positions on Bitcoin eclipsed longs, and as BTC shorts volume reached an all-time high, Bitcoin saw an explosion, appreciating over US$900 in under an hour, a growth of 13%. Since the pump, global cryptocurrency markets have risen over 10%, to just under US$300 billion.

Speculators overwhelmingly agree that the cause for such a price movement was a textbook short squeeze. A short squeeze occurs when a sharp price movement forces the liquidation of short contracts, causing each losing trade to market buy their position. As a result, these market buys further push the price upwards, causing more and more shorts to liquidate.

Either due to manipulation or natural movement, a small BTC price hike around the US$7,000 range sparked the force liquidation of thousands of losing contracts across all derivatives markets. Following numerous bull sentiments, including announced investments from the Rockefeller family and the European Union, it was clear that attitudes were shifting towards a reversal. Coupled with the fact that Bitcoin is down 70% since recent highs, the idea that there was still much money to be made shorting BTC in the immediate future now seems illogical.

A similar event occurred at the US$20,000 all-time high, when BTC longs approached record volumes, and similarly were squeezed, shooting BTC down into the three month bear trend that’s currently been experienced. A short squeeze also occurred prior to the massive bull run that kicked off last year, when shorts similarly eclipsed longs on Bitcoin.

Beyond just Bitcoin, cryptocurrencies as a whole have benefited largely from today’s jump. 40 of the top 100 coins by market cap have seen gains of 10% or more in the past 24 hours, led by Steem with a 35% growth, Bitcoin Private with 41%, and Mithril seeing a whopping appreciation of 165% in the past day. Given the increasingly positive perceptions and activities of cryptocurrency across the board, its very plausible that this growth can be maintained and even extended in the coming days and weeks.

Also to be recognized is the suggestion that the extended bear market has shaken out those simply looking to turn a quick profit. Many of the new money to enter cryptocurrency during the holidays consisted of a general population ignorant of the underlying technology and motivations of cryptocurrency. When the next, extended bull run takes place, those who initially support it will consist largely of those who recognize the importance of Bitcoin and cryptocurrencies as a whole and the potential to revolutionize the world for the better. With overarching, dedicated support, there is a better chance for such movements to be sustained for as long as possible.

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Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund

After leaving his position as an executive at Steven Cohen’s Point72 hedge fund, Travis Kling decided to start his own crypto-focused fund. This was a big and bullish announcement back then, but it still wasn’t enough to save the crypto market, which crashed only a month later. The following nine months were almost completely ruled by the bears, which has brought a lot of damage to the crypto world. Still, according to new reports, Kling has never given up on this project, and it seems that he will finally be ready to launch the new hedge fund over the next month. The dates have not been set yet, and it is possible that the fund’s launch will be as soon as in about two weeks. Former Point72 Manager Plans the Launch of His Own Crypto Fund The fund has been expected for a long time now, and according to what is known, it will be based in Delaware. Some reports even managed to find out that the name of the fund will supposedly be “Ikigai”. While nobody known for sure when the fund’s launch is actually going to be, it is known that it will happen in October. At first, the fund will be backed by a certain amount of capital that Kling’s unnamed partners have invested. However, later down the line, after the project starts its development properly, Kling plans to search for additional investors. Additionally, he will also add $15 million on November 1st, according to the reports. Eventually, by the time the mid-2019 arrives, Kling hopes that the fund will grow and expand to around $100 million. He even expects Ikigai’s venture branch to rise to $33M in capital invested. As for the foreign investors interested in the fund, they will be capable of allocating capital through investment vehicle based on the Cayman Islands. A Multi-Trillion Asset Class? During one of his recent interviews, Kling stated that he truly believes in the project, as well as the concept, and those willing to back it. This, more than anything, indicates that the project is more than just an attempt to generate large profits. Kling stated that he expects this to become a multi-trillion asset class that will expand to touch everyday life. He stated in an interview: It’s still very early, but the development and growth of this technology will be exponential. The firm will have a 13-person team that is said to be located in Los Angeles, while the fund will seemingly follow the regulations implemented by the Delaware government. Many believe that Ikigai’s launch will come on October 1st and that most of the allocated capital will remain in cash, at least at first. This is due to the fact that the investors are still trying to find a secure way into the crypto world. The post Institutional Investor: Crypto Will be Worth Trillions, Launches Hedge Fund appeared first on NewsBTC.

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