Bitcoin is Back: On Its Way to its Longest Winning Streak of 2021 as BTC Hovers Around $40k
The continued recovery in Bitcoin’s price has it going back above $40,000 after printing green candles for eight straight days. With this, BTC is on course for its longest winning streak this year. In early March, Bitcoin printed seven daily candles in a row when the price went from $46k to $58k. However, it was on February 8 that the BTC price went from $38k to nearly $47k in one single monster candle. “I hope you all caught up on sleep, because crypto is now fun again,” tweeted Sam Trabucco, a quantitative crypto trader at Alameda Research. “I legitimately *do* think people are coming around to the idea that the market's current recovery is WAY less leverage-driven than in the past,” with spot margin systems now getting super popular, he added. https://twitter.com/SBF_Alameda/status/1419737836241133569 This upwards price action has been the result of the largest short squeeze ever, which came up just shy of $1 billion, as per Bybt. However, with Binance having changed their API following the May 19th crash, they now only publish one liquidation per second; as such, the numbers are severely underrepresented. This short squeeze is expected to be far larger than $964.23 million. Despite the upwards move, the highest Bitcoin funding rate is 0.0251% on OKEx, and on some exchanges, it is still negative. As we reported, a divergence has been seen in the market, with FTX and Deribit recording positive funding rates right from the past weekend when price finally first started trending up while other exchanges were reporting negative funding rates. Trader CL of eGirl Capital noted,
“Def the most east-west diverging orderflow in a while.” “FTX and Deribit buying spot and derivatives aggressively meanwhile weekly, biweekly, quarterly basis on Huobi/Okex/Binance are back to pre-pump even tho price is 6k higher in like 2 days, which hints high short/hedge demand.”
https://twitter.com/PelionCap/status/1420177391335399425 Interestingly, despite all this, the kimchi premium, the gap in crypto prices on South Korean exchanges compared to other exchanges located globally, has gone under 1% and slowly slithering into negative territory as well, shared DooWanNam of Maker. At the peak of Bitcoin price, the kimchi premium climbed to over 20% in April. While Korean traders are doing what they do best, buying at the top and disappearing at the bottom when prices are attractive, Cathie Wood of Ark Investment continues to add to its crypto exposure. Amidst the return of bullishness, Wood just can’t seem to stop buying COIN stocks as after buying 113,043 shares on Monday, on Tuesday, Ark bought another 73,079 shares. With this, Coinbase continues to climb the ranks in Ark holdings, becoming the 6th most held stock now at roughly $1.5 billion. https://twitter.com/HsakaTrades/status/1420169771555819520 While the market is still struggling to turn full bullish, waiting to see if the trend has been reversed, after all, companies in the space are attracting tons of fresh capital. Funds and venture capitalists are chasing crypto companies to get exposure to the industry which is leading to their insane valuations. While Public crypto markets have started to gain traction yet again, private markets continue to see a frenzy of capital inflow, just as earlier this year.
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