Bitcoin Price Increase with Lower Short-Squeeze Ratio
Since the beginning of the year, Bitcoin’s price has risen by more than 21%. However, analysts have noticed that the current short-squeeze ratio for Bitcoin is lower compared to previous years.
Bitcoin’s Rapid Surge in Price
In January, Bitcoin’s price was around $42,000, but in February, it surpassed $52,000 for the first time in 27 months. This significant price increase would typically trigger a substantial short-squeeze. However, according to the Bitfinex Alpha report, this year’s short-squeeze has been relatively small compared to previous years.
The report states that “large whale investors have not been taking substantial short positions, given their expectation that prices will continue to rise.”
Metric Indicators of Bitcoin Bull Market Conditions
The Bitfinex Alpha report identifies current market conditions as tightening supply and increasing demand for Bitcoin.
The report highlights how the dynamics among Bitcoin holders indicate early bull-market conditions. According to Glassnode data cited in the report, less than 6% of long-term holder supply is currently held at a loss. Historically, similar instances have signaled early bull market conditions.
Bitcoin’s Price and Market Capitalization
At 8:04 a.m. ET, the price of Bitcoin was $52,219. The GM 30 Index, which represents the top 30 cryptocurrencies, experienced a slight decline of 0.09% in the past 24 hours.
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