A few hours ago, the price of Bitcoin reached nearly $ 40,000 after a long time. Many traders cite the news of Bitcoin acceptance by Amazon and the positive comments of Elon Musk in recent days as the main reasons for the price increase, however, one leading analyst of the digital currency market has added another important item to this list.
to the Report Bitcoin, the largest digital currency on the market, managed to make a strong leap to $ 39,850 a few hours ago. This is the highest price of Bitcoin since June 16 (June 26).
Now, after a few months of decline, if Bitcoin manages to maintain its recent gains, it can finally end this downtrend.
Alex Krüger, one of the leading analysts in the digital currency market, said that Bitcoin has experienced tremendous short-term pressure.
Short-term pressure refers to a situation in which the price of an asset rises rapidly as the number of short positions increases. In such a situation, sellers and traders who have taken a downward approach in the market have no choice but to buy again to cover the losses of their trades, and this can increase the price even more.
Also read: What is the position of Short and Long? Make a profit by lowering the price!
According to Bybit data, $ 929 million of Bitcoin short positions have been liquidated in the last 24 hours.
News of Amazon’s acceptance of bitcoin has been cited as one of the main drivers of the recent price spike.
The British newspaper City AM reported yesterday that an unnamed source said that Amazon planned to start accepting Bitcoin as a payment method by the end of this year.
Last week, the largest US corporation published a job advertisement for a Blockchain and digital currency expert, which caused a lot of speculation.
While Amazon’s acceptance of bitcoin has not yet been officially confirmed, the market seems to be counting on the possibility that the news is true.
Following Elon Musk’s ambiguous remarks in recent months, many traders worried that Tesla’s second-quarter earnings report for 2021, due to be released next Monday, would show traces of bitcoin sales.
However, during the The B Word virtual conference, Ilan Musk stressed his support for the world’s largest digital currency and announced that Tesla did not intend to sell its bitcoins.
In addition, Musk has announced that Tesla is likely to resume accepting bitcoins for the sale of its electric vehicles.