Bulls are Back? Bitcoin Sees a Short Squeeze
Bitcoin pushed upwards over the weekend, rising from around $32,500 Friday to over $40,000 by Monday afternoon. The gains seem driven by a short squeeze on Sunday, during which BTC rose roughly 10%. The move higher can be partly attributed to an article from British business and finance newspaper City A.M., which said that Amazon is seeking to accept BTC payments by the end of 2021, citing an insider. Moreover, the article stated that Amazon would seek to accept other major cryptocurrencies once Bitcoin payments have been implemented, and that it is exploring launching its own token for 2022. The company denied the report, according to a Bloomberg article later in the day.
In this piece, we examine factors that can explain Bitcoin's push higher, including the BTC perpetual futures funding rate, BTC futures leverage ratio, HODL waves, and exchange outflows.