TL;DR
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Between the time we finished writing on Sunday and the time we published on Monday morning, Bitcoin went from $39.5k to $41.6k.
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Why did BTC go up so quickly? Two beautiful words: liquidated shorts.
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When shorts expire, short sellers need to buy up a bunch of Bitcoin at already inflated prices – and all of that buying pressure pushes prices up even further.
Full Story
Damn, Bitcoin is making a fool out of traditional markets rn!
That’s not to say traditional markets are in bad shape, the S&P 500 is up 4.65% in the past month…
It’s just that Bitcoin is up about 4.5 times that in the same period.
And a big chunk of those gains came through just last night.
In fact, between the time we finished writing on Sunday and the time we published on Monday morning, Bitcoin went from $39.5k to $41.6k.
So how did it happen?
Two beautiful words: liquidated shorts.
Here’s what that means and how it can push crypto prices way up!
Folks that are ‘shorting’ Bitcoin essentially borrow a bunch of BTC from other people → sell it immediately → wait for the price to fall → buy it all back at a cheaper price → keep the difference as profit → pay back their lenders.
…only problem is:
When the price doesn’t fall, but instead goes up – those lenders come a knockin’.
Which means the short sellers need to buy up a bunch of Bitcoin at already inflated prices – and all of that buying pressure pushes prices up even further.
It’s a beautiful thing to witness, and it’s a big part of what got us to $41.6k.
Now…
A moment of silence for the liquidated shorts, they got rekt so the value of BTC could prosper.
