Bitcoin spikes $1,000 on short squeeze

It appears to be time to check in on bitcoin.

The cryptocurrency spike over $1,000 in 30 minutes on Thursday morning taking it back over the $8,000 mark for the first time since late March.

The move comes while mainstream media is running draconian stories of tax return drama for holders of the digital currency given its huge appreciation in 2017 and how much tax is owed on those profits.

The bellicose tweets coming out of the Trump White House may be a more valid reason for the spike as a Syrian missile strike could put Russia and the US face-to-face in a hot war situation.

It also appears that the rapid rise Thursday could be a partly a result of a short squeeze as those betting on bitcoin’s falling price needed to cover their positions, meaning they needed to buy the crypto to replace the borrowed currency on the wager to close out their positions.

According to one exchange — Bitfinex — almost 60% of the trades during the spike came from dollar-denominated buys. This is percentage of trades is higher than normal dollar volume.

1 thought on “Bitcoin spikes $1,000 on short squeeze

  1. Pingback: Bitcoin spikes $1,000 on short squeeze, sentiment changing – CryptoNews – Cryptocurrency news, bitcoin, ethereum, blockchain, smart contracts

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