Bitcoin Rises 23% to Best Week Since 2023 Amid Shortsellers Wipeout
Bitcoin's price surge has been impressive, reaching its best week since 2023. Over $1 billion in shortsellers' positions were wiped out as investors continue to bet on a higher price for the cryptocurrency. The price of Bitcoin rose by 23% over a seven-day period, trading at around $77,542 and earlier hitting a high of $79,319.
The surge in demand has led to a significant increase in investment in exchange-traded funds (ETFs), with over $1.6 billion poured into these vehicles this week alone. According to Farside Investors data, ETFs have taken in billions in new cash, fueling the price rise of Bitcoin.
Geoffrey Kendrick, Standard Chartered's Global Head of Digital Assets Research, noted that Thursday was the largest liquidation of Bitcoin shorts ever, with $1.1 billion in bets closed. He attributed this to the Treasury Department's announcement to double the size of its long-dated bond buybacks, which has led to lower yields and increased demand for non-yielding assets like Bitcoin.