Bitcoin Rockets Past $24,000 After 8% Surge
Bitcoin surged past $24,000 for the first time in two weeks, likely the result of a short squeeze that has historically sent prices higher. The 8% increase was the largest since BTC jumped 10.5% on September 9th.
The largest cryptocurrency by market capitalization had dropped below $21,600 in recent days due to investor concerns about crypto regulation, particularly targeting the stablecoin market, and about future U.S. central bank steps to tame inflation. However, these concerns seemed to fade quickly as bitcoin surged past $24,100 before retreating slightly.
Data from crypto data provider Coinglass showed that traders who bet on price shifts liquidated some $65 million of bitcoin over the past 24 hours, from which about $60 million were in short positions. Crypto-related stocks also jumped, with both exchange Coinbase (COIN) and bitcoin miner Marathon Digital Holdings (MARA) increasing 15%. Business software company MicroStrategy (MSTR), a major BTC holder, recently rose more than 9%.
Ether (ETH) was up 5.5% to recently trade at $1,645. The CoinDesk Market Index spiked 4% for the day. Lucas Outumuro, head of research at blockchain analytics firm IntoTheBlock, said that investors also found reason for optimism in Tuesday’s tepid U.S. Consumer Price Index (CPI), which showed inflation declining slightly to 6.4% on an annual basis even as it failed to meet analysts expectations.
Riyad Carey, research analyst at crypto data firm Kaiko, also said that markets may have already accounted for concerns about increased regulation tied to stablecoins, including Binance’s BUSD token.
The recent surge in bitcoin prices is a sign of strength for the crypto market and a reflection of the easing of regulatory fears. With the market continuing to show signs of strength, it is likely that bitcoin prices will continue to rise in the near future.