The price of Bitcoin today surged past $40,000 for the first time since June. Why is this happening? Could it be Elon Musk and the anticipation of Tesla earnings, or whispers of Amazon warming up to Bitcoin? That may all be playing some role, but the real driving factor is something a tad more technical, according to the experts.
Bitcoin, the biggest cryptocurrency by market cap, experienced a “short squeeze,” say analysts and traders. This is when an asset shoots up in value due to a large number of traders “squeezing out” short sellers—those betting that the price of an asset will go down.
The practice, with respect to cryptocurrency, is all part of the multi-trillion-dollar crypto derivatives market, which is larger than the spot market.
In the sport market, traders buy and sell actual cryptocurrencies, such as Bitcoin or Ethereum. In the derivatives market, people trade contracts, rather than the crypto itself. More advanced traders use “futures,” which are produc
Źródło: https://decrypt.co/76907/bitcoin-price-surging-epic-short-squeeze
