Bitcoin Price Surge Tied to Short Squeeze, Not New Capital

The Bitcoin price surged to $79,500 after short liquidations reached $3 billion in one day. The sudden increase was driven by a short squeeze, rather than new capital inflow or fundamental demand. Analysts caution that this movement may be more of a pump and dump scenario, where early buyers take profits, leaving late participants exposed to sharp reversals.

The Ethereum network is preparing for an upgrade, called Glamsterdam, which will change the fee calculation principle and add fees for transfers to new addresses. This update may pose problems for old wallets that use hardcoded fee limits, potentially leading to transaction rejections.

US regulators are increasing pressure on the crypto market, presenting their own approaches to regulation, including rules for stablecoins. The lack of government insurance for stablecoins makes these rules stricter and more vulnerable to changes in government policies.