The recent meteoric rise in Bitcoin prices has created significant market turmoil, crossing the $36,000 mark for the first time since May 2022. This spectacular rise is attributed to a “Short Squeeze” that saw over $62 million worth of Bitcoin shorts liquidated in the last 24 hours.
Bitcoin crosses $36,000 following a short squeeze
A sudden wave has swept through the cryptocurrency market, propelling the price of BTC above $36,000 and even 37,000, a first since May 2022.
Visit data reported by Coindesk reveal a particular effervescence on the market, with close to $50 million in liquidations in just four hours mainly during the first few hours of trading in Asia.
This cascade of liquidations created a short squeeze a rare situation propelling the price of Bitcoin to dizzying heights. For the uninitiated, a short squeeze is a chain reaction in which short sellers abandon their positions in the face of an unexpected price rise, triggering a buying rush.
At the heart of this surge, over $21 million worth of shorts have been wiped out on major platforms such as BitMEX, OKX and Binance. This phenomenon, centered in Asia, suggests a decision motivated by the region’s commercial exchanges, benefiting from a significant user base.
This spectacular rise also comes at a time when the Securities and Exchange Commission (SEC) initiated discussions with the fund manager Grayscale.
Speculation intensifies as to potential approval for the transformation of the Grayscale Bitcoin Trust GBTC into a Spot ETF, paving the way for a major step in the adoption of cryptocurrency by institutions.
In addition, analysts at Bloomberg Intelligence have raised their forecasts, stating that there is a 90% chance that a ETF Bitcoin to be approved in the U.S. as early as January.
As markets react to current events, the future of Bitcoin seems closely linked to regulatory and institutional developments. The coming weeks are of crucial importance, as they will determine whether this upward trend maintains its momentum.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.