RATE Group | Why Did Bitcoin Price Surge 6% to $7,200 In Minutes?
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Why Did Bitcoin Price Surge 6% to $7,200 In Minutes?

03 Jan Why Did Bitcoin Price Surge 6% to $7,200 In Minutes?

Posted at 05:29h in Bitcoin News by

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Bitcoin didn’t start of Thursday too hot, with the price of the leading cryptocurrency tanking, first to $6,900, then to $6,800 later that day. At the worst of the plunge, BTC was trading down 4% on the day, with altcoins posting similar losses across the board.

But it seems that bulls aren’t giving up without a fight. In the past hour, Bitcoin has surged some $400, which amounts to an approximately 6% move, tapping $7,250 before retreating to $7,200, which is where the price of Bitcoin is attempting to stabilize now.

Why Did Bitcoin Price Surge 6% to $7,200 In Minutes? 1

So, what exactly happened? What are traders thinking about the move?

Bitcoin Short Squeeze

Right now, the most common theory is that this was a classic short squeeze.

According to cryptocurrency research and data firm Skew Markets, at least $16 million worth of short positions on BitMEX were liquidated in this massive surge higher. While not a large amount of liquidations on a macro scale, the cryptocurrency market is seemingly…

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