Cryptocurrencies popped to the top of recent ranges on Monday as short sellers bailed out in the wake of a strong week and while traders hoped a handful of positive comments from influential investors might signal a turnaround in fragile sentiment.
Bitcoin rose as far as 12.5 percent to hit $39,850 (roughly Rs. 29.6 lakhs), its highest since mid-June during the Asia session, while ether hit a three-week peak of $2,344 (roughly Rs. 1.74 crores). On the heels of Bitcoin’s best week in almost three months, the move put the squeeze on short sellers. Bitcoin price in India stood at Rs. 28.3 lakhs as of 10am on July 26.
Last week, cryptocurrency enthusiast and Tesla boss Elon Musk said the carmarker would likely resume accepting Bitcoin once it conducts due diligence on its energy use. It had suspended such payments in May, contributing to a sharp crypto selloff.
Twitter boss Jack Dorsey also said last week that the digital currency is a “big part” of the social media firm’s future and, on Sunday, London’s City A.M. newspaper reported – citing an un-named “insider” – that Amazon is looking to accept bitcoin payments by year’s end.
Brokers said that taken together the remarks were enough to finally lift the market from the floor of support where it has held steady since a May plunge, while data also pointed to heavy short-seller liquidations – suggesting many might have given up.
“Over the last five trading sessions we’ve seen general near-term bullishness in the market, driven by key technicals, as well as recent positive comments,” said Ryan Rabaglia, global head of trading at digital asset platform OSL.
“With a record $1.2 billion (roughly Rs. 8,935 crores) in shorts liquidated over the past 24 hours, the outlook and momentum for the week ahead is positive,” he said.
Bitcoin was last up 8 percent at $38,064 (roughly Rs. 28.3 lakhs), putting it within sight of resistance around June’s $41,341.57 (roughly Rs. 30.7 lakhs) peak just a week after it was testing support at $29,500 (roughly Rs. 21.9 lakhs).
© Thomson Reuters 2021