Massive Short Squeeze Pushes Bitcoin Closer to $40K, Crypto Economy Jumps 9% Higher
The price of bitcoin jumped over 15% in a matter of three hours on Sunday evening and came awfully close to the $40K handle. Since then, the crypto asset has dropped back a few percentages and currently hovers above the $38K range. The entire cryptocurrency economy has spiked 9.72% rising to $1.53 trillion in overall value.
Bitcoin’s Price Skyrockets After Long Period of Consolidation
Bitcoin and digital asset values have risen dramatically during the last 12 hours as bitcoin (BTC) jumped more than 15% yesterday evening (EDT). BTC has managed to hold above the $38K zone on Monday after falling from $39,850 per unit at 9:00 p.m. on Sunday. Bitcoin is still up 12% during the last 24 hours and 24% for the week. Out of the crypto economy’s $1.5 trillion, bitcoin commands 47.1% of that value while ethereum (ETH) commands 17.8%. At the time of writing, BTC is exchanging for $38,489 per coin.
The second-largest crypto asset, in terms of market valuation, is ethereum (ETH), which is swapping for $2,345 per coin. ETH has gained 9.59% over the last day and is up 29.47% during the last seven days. The third-largest crypto asset, binance coin (BNB), is up 7.89% during the last 24 hours and 12.6% for the week. Dogecoin (DOGE) has been the biggest gainer in the top ten today as it jumped 15.15% across the last day and is up 29.2% for the week.
Today’s biggest gainer out of all 10,000+ crypto assets is the token amp (AMP), up 50.3% during the last day. 24-hour statistics show thorchain (RUNE) is up 23% and bittorrent (BTT) has also gained 23%. Today’s biggest losers include flow (FLOW), down 7.5%, stacks (STX), down 1.7%, and axie infinity (AXS), which lost 1.3% in 24 hours. Market aggregators show there’s an increase in global trade volume today with BTC commanding $38 billion of that volume. Tether (USDT) captures $74 billion and ethereum (ETH) has $24 billion.
Rumors of Amazon Expanding Its Crypto-Asset Presence Sparks FOMO
Speaking with Bitcoin.com News, Etoro’s crypto analyst Simon Peters explained how digital assets saw a phenomenal breakout to start the week. “Crypto has staged a stunning breakout on Monday morning, defying the recent gloom for investors,” Peters wrote. “The bullish trading comes on the back of news over the weekend that Amazon is looking to expand its crypto-asset presence, with the news it was hiring a cryptocurrency and blockchain lead,” Peters said. The crypto analyst added:
When Paypal made its announcement, bitcoin languished around $11,700, but the ensuing bull run took the crypto asset to an all-time high of $63,346.
Bitcoin Shorters Lose Their Shirts in Liquidation Land
Besides the Amazon rumors, most of the action on Sunday evening stemmed from the massive liquidation of short-sellers. Bitcoin.com News reported on a possible short squeeze on July 12, when BTC/USD shorts were starting to stack up. The market report explained that usually, short squeezes occur in the world of bitcoin trading when there’s an unusually high amount of BTC/USD short positions recorded.
At times when this trend happens, it triggers an extremely fast pump that leaves short sellers in the dust and in the land of liquidations. Many other analysts and traders assumed this market play was in the cards. Close to $900 million in short positions were liquidated in a 12-hour time span as BTC spiked 15% in value rather quickly. Bybit data shows a great number of traders were “rekt” by the short squeeze and 24-hour liquidation stats now measure $1.15 billion.
Bitcoin’s Yearly Cycle
In another investor’s note sent to Bitcoin.com News, the CEO at crypto trading bot firm Cryptohopper, Ruud Feltkamp, explained that all the market action is simply part of bitcoin’s price cycles. “At a superficial level, the current bull run resembles that of 2017, though that’s technically absurd and illogical. However, if this continues, it would mean that bitcoin should soon reach $50k again,” Feltkamp remarked. The Cryptohopper executive added:
The market has been consolidating for some time, and an upturn was expected by many in late Summer or early September, as this is part of bitcoin’s yearly cycle. In addition, the decision by Amazon to hire a crypto team and Tesla accepting bitcoin again have given the necessary spark to fire up the cryptocurrency market once more.
What do you think about the crypto market action during the last 12 hours and the recent value spikes? Let us know what you think about this subject in the comments section below.