Bitcoin counts another stop on the north. The current ATH cryptocurrency is $ 118,400.
Bitcoin and the new ATH
Since yesterday, we are observing stronger increases on the market. The Bitcoin course broke yesterday’s ATH and cost $ 118,400 in the last hours. Currently, it has dropped slightly, but is still above USD 117,000.
Why such a sudden price leap? At this point, he will serve you a small lesson from playing on the stock exchange. Short Squeeze took place on the market. It is about a strong increase in the price of shares or other financial instrument, which forces investors playing inheritance (i.e. so -called shorters) to mass closing their positions, which in turn conquers the price even more.
Sounds in a too complicated way? So I explain brighter!
Shorting is that the investor borrows shares (cryptocurrencies) and sells them, hoping that their price will fall. When the price actually drops, it buys it cheaper, gives it to the owner and earns a difference. However, if the price instead of falling, it starts to grow rapidly, the investors who are who suffer losses and at some point they have to buy back assets at a higher price to limit the losses. This mass redemption causes a further increase in price – and so the spiral drives, the short Squeeze. And something like this took place at night on the Bitcoin market – Shorty worth USD 833 million was liquidated.
The market is no longer worried about Donald Trump?
However, this is not the above. It is also interesting that the market has already ceased to pay attention to the words of Donald Trump, who again threatens the world of customs duties, which are to be aimed at countries that do not want to go to economic concessions towards the USA. It is important because the biggest declines began with this – announcement at the beginning of February of customs duties that were to hit Canada and Mexico.
So there are many indications that cryptocurrency investors have ceased to pay attention to the threats of the White House. At least, they don’t pay as much weight to them as before.
So what is ahead of us? There are many indications that further increases. It is worth noting, however, that in the background Altcoins are also starting to grow hard, which suggests that the Altcoin Season, desired by many, will take place.
