Bitcoin shorts are wiped off as the BTC price briefly surpasses $25,000 and reaches an eight-month high

Short-sellers of Bitcoin have taken a beating over the previous two days.

According to statistics given by the crypto derivative monitoring website coinglass.com, short Bitcoin future bets worth about $100 million were liquidated across key exchanges during the last two sessions, during which Bitcoin gained an incredible 8.5%.

Bitcoin is now trading in the vicinity of $24,100, almost 13% higher than previous monthly lows in the low $20,000s. Last week’s predictions that Bitcoin will fall back to the $20,000 level finally proved to be incorrect, as Bitcoin reached a new high since June 2022 on Thursday, reaching $25,270. The news that two of the top Mt. Gox creditors would get the majority of their settlement in BTC as opposed to fiat currency contributed to Thursday’s increase.

Mt Gox was one of the original Bitcoin exchanges, but a 2014 hack resulted in the loss of the majority of its cash, resulting in the collapse of the exchange. Since then, creditors have been involved in long asset recovery actions. The Mt. Gox-fueled intraday gain was short-lived and seems to have caught some short-term bullish speculators off guard who was counting on a push to the high $25,000 range, as demonstrated by a surge in long position liquidations on Thursday.

According to coinglass.com, long bets worth around $35 million were liquidated on Thursday, after just $5 million were liquidated on Wednesday. Profit-taking in the aftermath of the recent advance and a stop-run on those who had been too aggressive in their pursuit of the upside might push Bitcoin down below $24,000.

Nonetheless, the recent rebound from previous weekly lows means that Bitcoin is still up over 45% for the year, despite a recent pullback of almost 5% from earlier session highs. Notwithstanding the recent spike in the US dollar and US bond rates in anticipation of further interest rate increases from the Fed this year in response to a run of much stronger/hotter-than-expected significant US data announcements, bulls remain in control.

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