This Factor Is Boosting The Price Of BTC | CryptoGazette
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The crypto market exploded and the current prices are off the roof. At the moment of writing this article, BTC is trading in the green and the king coin is priced at $47,190.
It’s been just reported that a leading crypto analytics firm is looking at what’s under the hood of Bitcoin to see what’s powering BTC’s latest rally.
Short sellers and BTC
In a new video, Glassnode says that short sellers, or those who were betting on the sustained drop of Bitcoin’s price, were responsible for carving out a bottom for BTC.
“Short liquidations typically happen when we have very violent upswings. Essentially, people get very comfortable with it with a market trend. They see it going down, and down and down… Eventually, they feel confident enough and go, ‘You know what? I’m tired of being squeezed out of my long position. I’m going to go short.’ Impressively, they managed to do that at the exact bottom, and then they get squeezed out in the opposite direction, and the trend starts to change.”
Glassnode’s chart is showing that the shift in trend appears to have started on February 24th when short liquidations skyrocketed as BTC traded around $37,000.
As short sellers fuel BTC’s initial leg up, Glassnode also made sure to explain that the rally wouldn’t be sustained without organic demand.
The analytics firm says it is looking at Bitcoin’s number of addresses with a non-zero balance metric to show that investors continue to buy BTC in spite of the macroeconomic backdrop.
“What we can see is that over the last couple of weeks, notice how we’ve actually seen a bit of an acceleration. It’s really starting to curl to the upside. So we are seeing that people, even though we’re at depressed prices and even though we’ve been in what I would call a bear market…”
The notes continue and reveal:
“Despite all of that, all of the geopolitical uncertainties, the macro headwinds, the Fed hiking rates – all of the risks in the economy right now – people are still accumulating BTC.”
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