Bitcoin’s price has rocketed to $36,800, representing a sharp 4% increase within the last 24 hours, a level not seen since May 2022. This rally has been attributed to a combination of market dynamics and speculative buzz, setting a fast-paced trading environment that left some investors scrambling.
The substantial price movement has been pinpointed as the largest short squeeze witnessed since late October, wherein over $161 million and $68.5 million worth of Bitcoin short positions were liquidated on consecutive days, propelling the price upward by more than 18%. A similar phenomenon occurred today, catching several traders off guard, particularly those who were betting on the resistance at the $36,000 mark.
Reports from CoinGlass indicating that the past 24 hours have seen nearly $150 million in liquidations, with a staggering 80% attributed to short positions. Bitcoin alone accounted for over $65 million, asserting its dominance in the market and the volatility that comes hand in hand with it.
Bitcoin’s price ascended nearly 3% from $34,600 in a rapid succession. This squeeze has been a pivotal force in driving prices upward as investors who bet against Bitcoin were forced to buy back into the market at higher prices to cover their positions.
Adding to the bullish momentum are multiple analysts who, alongside AI language models like ChatGPT, speculate that Bitcoin’s upward trajectory is far from peaking. Predictions have even been made suggesting that the cryptocurrency could reach new all-time highs in the coming months.
Renewed speculations over the approval of a spot Bitcoin ETF in the United States have also played a crucial role in bolstering investor sentiment. The market has been rife with discussions that the U.S. Securities and Exchange Commission might greenlight this financial product, which would mark a significant milestone for cryptocurrency integration into mainstream financial markets.