Bitcoin has surpassed $85,000, reaching its highest since January, with a 5.6% increase. This rise is due to a short squeeze that has forced automatic purchases.
Bitcoin has experienced a notable increase of 5.6%, reaching $85,680, its highest level since the beginning of the year. This surge has been driven by a short squeeze, which has generated automatic purchases in the market. The information, reported by expansion.com, highlights that this situation occurs following the recent vote on the Clarity Act, which failed to advance in its processing.
The Clarity Act aims to establish clearer federal standards for the cryptocurrency market in the United States and define which body should oversee the various areas of the sector. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has issued an order that establishes a temporary regulatory pathway for certain platforms and liquidity providers to facilitate the trading of tokenized representations of U.S. stocks.
According to eToro analyst Javier Molina, the significant movement in Bitcoin's price has been driven by the closing of short positions, although he warns that these “forced purchases” do not reflect a new sustained demand in the market. Despite this increase, Molina suggests it will be crucial to observe whether Bitcoin can maintain this level and if trading volumes in the spot market continue to grow.
Other cryptocurrencies have also shown significant increases, such as Solana, which has risen nearly 8% to $116.89, Ethereum, which has increased by more than 6% reaching $2,736.3, and BNB, which has gained over 5%, reaching $790.20.
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