Bitcoin BTC News

Bitcoin jumped $1,000+ in a single day

The Pump

After a period of low volume and volatility where Bitcoin remained stuck inside of a very tight range, it has finally broken out and with monumental force. After spending weeks under the $10,000 psychological level and rejecting it multiple times, it was finally able to not only cross it but to cross $11,000 as well.

New Grounds

This rally has helped Bitcoin cross the two previous peaks of October 2019 and February 2020. While some technical analysts state that all news is priced in and price moves to its own accord, a potential narrative for this rally is the recent OCC letter allowing banks to custody cryptocurrencies on behalf of customers.

Digital Gold & its Ancestor

Bitcoin, dubbed the digital gold, was not the only one to rally yesterday, Gold did too. In fact the latter breached the all-time highs set in August 2011.

Alongside Gold and Bitcoin, even silver had saw a significant advance in the past few  weeks.

Global Monetary Inflation

These advances push the narrative of global monetary inflation triggered by the pandemic and the FED’s printing. This was one of the reasons Paul Tudor Jones had shown interest in Bitcoin earlier this year also stating he believes that Bitcoin has a high likelihood of being the “fastest horse” which thus far it has been.

Liquidations & Fund Closure

When price constricts to a small range, trades on both sides (long and short) start accumulating which leads to one side feeling the heat when price breaks out. Yesterday was no exception. Many shorts (including those on Alts) had been liquidated yesterday, to the tune of $500M+.

On that same note, crypto hedge fund Tetras Capital, announced that they have shut down after losing the majority of the capital. The timing of the news, after large rallies, communicates that it is likely because they held a bearish bias in the past few weeks.

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