May 30, 2024
Latest Cryptocurrency News

Bitcoin Surges Above $28K to Trigger Largest Short Squeeze of the Month

In the largest short squeeze of the month, Bitcoin (BTC) surpassed $28,000 Tuesday afternoon. According to data, the leading cryptocurrency surged to a high of $28,150 within a few hours after trading steadily around $26,800 throughout the day. Although it later experienced a slight retreat to around $27,900, it maintained a 5.2% increase over the past 24 hours, outperforming most other digital assets.

CoinGlass data revealed that traders who anticipated a price decline suffered approximately $36.6 million in liquidations over the past day, marking the highest volume of short liquidations since May 28.

The price surge coincides with recent major crypto initiatives announced by several prominent financial services institutions. This has injected optimism into a market sentiment that had soured due to mounting regulatory pressure in the United States, including legal actions against crypto exchanges Binance and Coinbase.

Deutsche Bank, a banking behemoth, disclosed on Tuesday that it had applied for a digital asset custody license in Germany. On the same day, crypto exchange EDX Markets commenced trading in BTC and ether (ETH) after receiving funding from notable financial heavyweights such as Charles Schwab (SCHW), Citadel Securities, and Fidelity Digital Assets. In a surprising move last week, investment management giant BlackRock (BLK) filed for a spot BTC exchange-traded fund (ETF).

“The bitcoin rally certainly is correlated with the news of all these larger traditional financial institutions looking to get serious exposure to the digital asset ecosystem,” said Brent Xu, CEO and co-founder of decentralized finance (DeFi) bond market platform Umee. Xu added, “It’s clear that BlackRock, Fidelity, and the others have client bases that want to invest in BTC and other crypto assets by way of ETFs and other more traditional investment vehicles.”

This news has served to somewhat blunt the relatively bleak regulatory environment that the United States finds itself in, and it also seems to suggest that these big players are wanting a regulatory environment that is both clearer and more fair than what exists right now,” Xu further commented.

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