A Short Squeeze Brought Increase in Bitcoin’s Price
Another strange event took place in the Bitcoin market as many factors played a role for new profits in the market, up to 30 % in just a week.
While the price was around $34,000, a story came up in the news about Amazon and its readiness to accept Bitcoin as a medium of payment for its platform. Such a story made the price to climb up to $39,000, creating another parallel problem.
Many investors had opened short positions, betting that Bitcoin’s price will fall. The price surge make the mentioned investors to close their positions as fast as possible with reversing buying orders, skyrocketing the price at $42,000 in just a few days.
Indeed, the number of short contracts was the largest ever recorded in the crypto history, showing that the market share and the new behaviors that have been developed.