Bitcoin’s $28K Rally Triggers Record Short Squeeze, Liquidating $36.6M. Explore Surge Reasons, Institutional Interest, and Financial Institutions’ Crypto Initiatives.
According to data from CoinGlass, the recent price surge resulted in the liquidation of approximately $36.6 million worth of short positions within the past 24 hours, marking the highest amount for this month.
On Tuesday afternoon, Bitcoin (BTC) experienced a significant surge, surpassing the $28,000 mark and triggering the largest short squeeze seen this month. The leading cryptocurrency, with the highest market capitalization, quickly rose to a peak of $28,150 within a few hours, following a relatively flat trading period around $26,800 earlier in the day.
Although it later retraced some of its gains and dropped to approximately $27,900, it still maintained a 5.2% increase over the past 24 hours, outperforming most other digital assets.
Traders who had taken positions expecting a decline in prices suffered losses of around $36.6 million due to the liquidations that occurred within the past 24 hours, based on data provided by CoinGlass. This represents the largest amount of short liquidations observed since May 28.
Prominent Financial Institutions’ Crypto Initiatives Drive Optimism Amidst Regulatory Pressure
The recent price surge follows a series of significant crypto initiatives announced by prominent financial services institutions, which have brought some optimism amidst the growing concerns due to increased regulatory pressure in the United States, including legal actions against crypto exchanges such as Binance and Coinbase.
Deutsche Bank, a major banking institution, revealed on Tuesday that it has applied for a digital asset custody license in Germany. Additionally, EDX Markets, a crypto exchange that secured funding from notable financial heavyweights like Charles Schwab, Citadel Securities, and Fidelity Digital Assets, commenced trading with BTC and ether (ETH) on the same day. Furthermore, BlackRock, a renowned investment management giant, surprised the market by filing for a spot BTC exchange-traded fund (ETF) last week.
According to Brent Xu, the CEO and co-founder of the decentralized finance (DeFi) bond market platform Umee, the recent surge in Bitcoin is undoubtedly connected to the announcements made by established financial institutions expressing their strong interest in entering the digital asset space. He emphasizes that it is evident that BlackRock, Fidelity, and other institutions have a customer base that is eager to invest in BTC and other cryptocurrencies through avenues such as ETFs and other conventional investment instruments.