Bitcoin Holds Gains After Massive Short Liquidation Event
After crypto’s dramatic surge higher overnight, the narratives have been flowing.
From technical breakouts (BTC above its 50DMA) to fundamental (Amazon insider says “ready to roll” on accepting crypto payments), but Occam’s Razor still rules. Simply put, it was a massive short liquidation.
More than $950 million of crypto shorts were liquidated on Monday, the most since May 19, according to data from Bybt.com.
“The extent of the jump was probably driven by over-leveraged shorts,” said Vijay Ayyar, head of Asia Pacific at crypto exchange Luno in Singapore, while adding the rumors over Amazon likely had a role to play too.
For now, Bitcoin is holding on the majority of the short-squeeze gains…
Cue the FUD.
Mon, 07/26/2021 – 08:32