Bitcoin jumps just under $ 3,000 in 20 minutes
Bitcoin – it’s rising again. (Image: Shutterstock)
Bitcoin jumped around $ 3,000 in 20 minutes on Friday and is now hovering around that level. A short squeeze is to blame, but the framework conditions also favor the rise.
Bitcoin jumped from $ 44,905 to $ 47,604 on Friday. Since this happened in a period of 20 minutes, the chart looks impressive.
Make something – the current Bitcoin chart. (Screenshot: t3n / Coinmarketcap)
At first glance, this seems to be the truth of what observers had predicted for October and the last quarter of 2021. A hopeful hashtag is already circulating on Twitter, namely Uptober. The explanation behind the jump seems quite banal.
According to Cointelegraph it is a classic “short squeeze”. This arises when shortsellers have bet on falling prices, but ultimately come to the end of their loan and have to buy values at then current prices in order to meet their return obligations – in other words: lose their short bets.
That is exactly what is supposed to have happened. In less than an hour on Friday night, values of over $ 270 million are said to have liquidated. As always in such cases, the strong demand at high prices leads to even higher prices.
Others see political influencing factors as being involved, which could have improved the general mood. According to the motto that time heals all wounds, China’s most recent blow to the crypto industry, which made the headlines for the past few weeks, is slowly being forgotten. In addition, Jerome Powell, the head of the US Federal Reserve, assured on Thursday at a congressional hearing that the US had no plans to ban crypto currencies. That calms down and distracts from the rather hysterical tones of the new stock exchange supervisor Gary Gensler.
