Bitcoin is approaching its all-time high and the demand for the cryptocurrency has risen dramatically after bullish contracts on the crypto exchanges. The world’s most popular cryptocurrency is trading at $ 61,089 (roughly Rs 45.96,677) on Coinbase at the time of writing, pushing the October rally to over 40 percent. One analyst now believes that the current Bitcoin rally has been whale driven and that short liquidations are yet to generate a lot of buzz.
Ki Young Ju, the CEO of CryptoQuant – a well-known South Korean data analytics and research company – tweeted, stating that Bitcoin prices have recently been driven by whales buying large amounts of the cryptocurrency through derivatives. This is a clear shift compared to the trend of the last few months. Since the BTC crash in May, Bitcoin bulls have been reluctant to buy large quantities and temporarily focus on other assets such as non-fungible tokens.
This rally was driven by whale buying, not short squeeze.
Massive $ BTC buy orders on derivatives exchanges do not come from short liquidations.
1 / No large short positions have been liquidated so far
2 / Whales have taken long positions since the dip pic.twitter.com/Bbdvi9ag9n
– Ki Young Ju 주기영 (@ki_young_ju) October 15, 2021
In the crypto world, a “short squeeze” is an event where the price of an asset skyrockets over a short period of time as leveraged short positions are liquidated or, as the phrase suggests, “squeezed”. This creates a snowball effect where the higher the price goes, the more shorts are wiped away, which drives the price up further. Whales, on the other hand, are basically majority owners of assets, the movements and dealings of which have a significant impact on the market.
According to the latest data released by Santiment, large Bitcoin addresses holding between 100 and 1,000 coins are up about 2 percent in the last month. “Compared to five weeks ago, there are now 254 more whale addresses, which is a remarkable 1.9 percent increase in this short period of time,” said Santiment in a recent tweet, shedding more light on the increasing whale activity with rising Bitcoin prices .
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