TL; DR
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Between the time we finished writing on Sunday and the time we published Monday morning, Bitcoin went from $39.5k to $41.6k.
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Why did BTC rise so quickly? Two nice words: liquidated shorts.
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When shorts expire, short sellers have to buy up a lot of Bitcoin at already high prices – and all that buying pressure drives prices up even further.
Full story
Damn, Bitcoin is fooling traditional markets!
That doesn’t mean that traditional markets are in bad shape; the S&P 500 is up 4.65% over the past month…
It’s just that Bitcoin is up about 4.5x over the same period.
And a big part of that gain came last night.
Between the time we finished writing on Sunday and the time we published Monday morning, Bitcoin went from $39.5k to $41.6k.
So how did it happen?
Two nice words: liquidated shorts.
Here’s what that means and how it could drive up crypto prices way up!
People who “short” Bitcoin essentially borrow a bunch of BTC from other people → sell it immediately → wait for the price to drop → buy it all back at a lower price → keep the difference as profit → pay back their lenders.
…only problem is:
When the price not fall, but instead rise – those lenders come knocking.
That means the short sellers have to buy up a lot of Bitcoin at already high prices – and all that buying pressure pushes prices even higher.
It’s beautiful to see and it’s a big part of what got us to $41.6k.
Now…
A moment of silence for the liquidated shorts, they were given stretch so that the value of BTC could flourish.
