Bitcoin rally near $29K triggers short squeeze
Virtual Digital Assets or VDA staged a strong rebound during the last 24-hours, led by the jump in Bitcoin price to a six-week high, as the investor sentiment received a boost after major players from the traditional financial sector evinced interest in the sector. The institutional investor participation prospect, triggered a huge short liquidation – the largest this month.
The world’s largest digital asset Bitcoin gained over 7% to $28,850. Bitcoin prices have jumped more than 70% this year so far. Among smaller coins, Ether, Cardano and Solana also traded higher.
IC15 index, the barometer of the top 15 tokens, surged 4.37% to 38,952 points.
Futures linked to the S&P 500 ticked higher by 2.9%, while Nasdaq 100 futures traded flat. Futures tied to the Dow Jones Industrial Average were moderately higher by 0.05%.
Crypto market was buoyed on the back of the start of EDX Markets, a digital-asset exchange backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp.
Moreover, BlackRock Inc. and WisdomTree Inc. have applied in quick succession to launch spot US Bitcoin exchange-traded funds, Bloomberg reported.
The entry of traditional institutions in the crypto market fuelled optimism among digital asset investors after the gloom caused by a US Securities and Exchange Commission’s crypto crackdown.
Last week, the US regulator had filed lawsuits against exchange operators Binance Holdings Ltd. and Coinbase Global Inc. and designated a raft of digital tokens as unregistered securities.
A rout in crypto last year erased $1.5 trillion and contributed to blowups such as the bankruptcy of the FTX exchange. Bitcoin remains far below its pandemic-era, liquidity-fueled 2021 peak of almost $69,000, the Bloomberg report said.
Interestingly, BTC dominance remains within striking distance of 50%, hit in the previous session. It achieved that feat for the first time in 2 years. This means, Bitcoin alone accounts for half of crypto’s total $1.14 trillion dollar market capitalization. Bitcoin’s dominance is the metric which tracks its share relative to that of the rest of the market.
Bitcoin, the largest cryptocurrency by market value, recently changed hands 8.21% higher at $28,956.
Ethereum (ETH), the second largest cryptocurrency by market value, recently quoted at $1,811.68, up 4.89%.
From the large-cap cryptocurrencies,
Solana (SOL) is up 5.64% at $16.80.
Polygon Matic quoted 6.89% higher to $0.64.
Dogecoin gained 3.76% up at $0.064
Avalanche AVAX was trading at $12.30, up 8.05%
Ripple’s XRP is up 2.21%, at $0.49
BNB has gained 3.09% to trade at $248.15
Shiba Inu was trading up by 2.57% at $0.000007
Cardano’s ADA token was higher 8.01% to trade at $0.27
Polkadot was up by 5.03% to trade at $4.70
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