Bitcoin is reaching its all-time high and the demand for the cryptocurrency has increased dramatically for fast contracts on crypto exchanges. At the time of this writing, the world’s most popular cryptocurrency is trading at $61,089 (approximately 45,96,677) on Coinbase, taking October’s rally up by more than 40 percent. One analyst now believes that the current bitcoin rally is driven by whales and that the short liquidations are yet to make a big splash.
Ki Young Joo, CEO of CryptoQuant, South Korea’s well-known data analytics and research company, tweeted that Bitcoin Prices have recently been driven by whale buying in large quantities. cryptocurrency through derivatives. This is a marked change from what has been going on in the past few months. Since BTC’s return in May, bitcoin bulls have been hesitant to make major purchases and are temporarily focusing on other assets such as non-fungible coins.
The rally has been driven by whale buying and not bearish pressure.
Big $BTC Buying market orders in derivatives exchanges does not result from short liquidation.
1/ No major short positions have been liquidated so far
2/ Whale cut long position after dip pic.twitter.com/Bbdvi9ag9n
— Ki Young Joo (@ki_young_ju) October 15, 2021
In the crypto-world, a ‘short squeeze’ is a phenomenon where the price of an asset skyrockets in a short period of time as leveraged short positions become liquidated or, as the phrase suggests, ‘squeezed out’. This creates a snowball effect where the higher the price, the more shorts are wiped out, pushing the price higher. Whales, on the other hand, are basically the majority asset holders whose movements and behavior have a significant impact on the market.
According to the latest data published by Santiment, large bitcoin addresses of between 100 and 1,000 coins have increased by about 2% in the past month. “254 more of these whale addresses now exist than five weeks ago, which is a remarkable 1.9 percent increase over this short time period,” Santiment noted in a statement. Recent Tweet, shedding more light on the increased amount of whale activity as bitcoin prices rise.
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