Bitcoin is reaching its all-time high, and bullish contracts on crypto exchanges have seen a significant increase in demand. At the time of writing, the world’s most popular cryptocurrency was trading at $61,089 (approximately Rs. 45,96,677) on Coinbase, bringing October’s gain to over 40%. According to one expert, the current Bitcoin rise is being driven by whales, and short liquidations have yet to make a significant impact.
Bitcoin prices have recently been pushed by whales buying enormous quantities of the cryptocurrency through derivatives, according to Ki Young Ju, the CEO of CryptoQuant, a well-known South Korean data analytics, and research firm. This is a significant departure from the previous several months’ trend. Since Bitcoin’s May fall, bulls have been cautious to make large purchases and have shifted their emphasis to non-fungible tokens.
A ‘short squeeze’ in the crypto industry is when the price of asset skyrockets in a short period of time as leveraged short bets are liquidated, or squeezed,’ as the name indicates.
This has a snowball effect, in which the higher the price climbs, the more shorts are wiped off, driving up the price even more. Whales, on the other hand, are big asset owners whose transactions and movements have a significant influence on the market.
Large Bitcoin addresses containing 100 to 1,000 coins have increased by around 2% in the last month, according to the latest statistics from Santiment. “There are 254 more of these whale addresses now than there were five weeks ago, which is a noteworthy 1.9 percent growth in this short time span,” Santiment said in a recent Tweet, adding to the growing quantity of whale activity as Bitcoin values rise.