Bitcoin Price Surges 14% in Short Squeeze Fuelled Rally
The Bitcoin price has seen a significant surge in recent days, gaining around 14% from $62,821 on August 17 to $72,071 by August 20. This rally has not only affected Bitcoin but also the broader altcoin market.
The key driver behind this upward trend appears to be the derivatives market, where short sellers were heavily positioned for a further decline in prices. However, as the price of Bitcoin climbed, these leveraged bearish positions were liquidated across the market, leading to a massive short squeeze.
Data from CoinGlass shows total crypto liquidations reaching $3.30 billion over the latest 24-hour period. This short squeeze has pushed prices higher, creating another round of liquidations in an ugly feedback loop for those who held bearish positions.