Most were expecting that Bitcoin would be headed for more losses after an initial early 2023 push, but against all expectations, the crypto instead rocketed to a six month high. At the time of writing the number is $24,696.91, the highest it’s been since August 2022. A pleasant surprise to say the least, but what exactly is causing the price surge, and what does the situation mean for Bitcoin futures?
Many market watchers pointed to the Consumer Price Index, which went some way to reducing anxiety about the US economy. The Fed is still expected to make policy moves, but expectations are now that the moves won’t be as dire as previously thought. Hence, with easing anxiety it only makes sense that the Bitcoin market would respond positively.
But on closer inspection, it perhaps isn’t just an atmosphere of easing tension that pushed the surge. A more likely culprit is information released by data provider Coinglass. Details released by Coinglass revealed that traders focusing on short price shift investments had been doing exceptionally well, with roughly $65 million in Bitcoin having been liquidated over the previous 24 hours. Of that $65 million, $60 million was in short positions.
So, the surge appears to be a scramble by short investors to get in on the action.
Though it also isn’t just Bitcoin that has been enjoying an unexpected surge. Other coins such as Ether, the second biggest crypto worldwide, also soared past $1,700. The gain equated to 9%, marking the crypto as another that is defying expectations. YGG, related to the play-to-earn Yield Guild Games, saw an 11% gain. NEAR of Near Protocols jumped by 11%.
Overall, according to the CoinDesk Market Index (CMI), digital asset performance was up 10% overall.
In more detail, the tech-heavy Nasdaq and S&P 500 exchanges both managed to close up, but only by less than a single percent. Meanwhile, Coinbase (COIN) and Marathon Digital Holdings (MARA) saw increases of 17% and 18%, demonstrating just how wide the performance gap is.
Though a perhaps better example is MicroStrategy (MSTR,) a software company known to have major Bitcoin holdings. The company saw an impressive rise of 9%, riding on the wave of the global surge.
As crypto markets soar and Bitcoin’s outlook seems promising, many are still wondering what is becoming of FTX. The fate of FTX founder Sam Bankman-Fried is still unknown, though at the moment a US federal prosecutor is asking the US District Court to alter the terms of Bankman-Fried’s release on bond.
The prosecutor is demanding that Bankman-Fried be banned from using a mobile phone or even from having access to the internet. This is a drastic step up from the previous release conditions, which restricted Bankman-Fried only from using encrypted messaging systems. However, after it came to light that he had used a virtual private network to watch the NFL playoffs, it is now being demanded that Bankman-Fried not have any access to the internet at all.
