Bitcoin Reclaims $62,000 as $100 Million BTC Short Positions Liquidated

1. Bitcoin has rebounded above $62,000, marking a significant recovery after a tumultuous week for financial markets, fueled by the best performance of the S&P 500 and Nasdaq 100 since November 2022.
2. Bitcoin's rise has triggered a domino effect on other major cryptocurrencies, with Ethereum and Toncoin jumping 10%, while Solana rose 5%.
3. This rebound was amplified by the liquidation of $100 million in short positions on Bitcoin futures, contributing to the price surge.

Bitcoin surpasses $62,000 Thursday night, marking a significant rebound after a tumultuous week for financial markets. The surge has revived investors' optimistic predictions, with new forecasts of $100,000 by the end of the year.

Background to the rebound

THE Bitcoin rebound comes amid a broader market rally, led by U.S. stock markets. On Thursday, the S&P 500 posted its best performance since November 2022with the tech-heavy Nasdaq 100 up 3.1%. The rally helped offset losses earlier in the week, when stock indices and cryptocurrencies fell sharply.

The rise of the Bitcoin has also had a domino effect on other major cryptos. Ethereum and Toncoin each jumped 10%, while the Solana experienced a 5% increase.

Impact of liquidations and market sentiment

Bitcoin's sudden surge, up nearly 8% in just 24 hours, is partly attributed to the massive liquidation of short positionsor bearish, on BTC-backed futures. Approximately $100 million of those bearish bets were liquidatedmarking the fourth largest such liquidation for the current year. This phenomenon of 'short squeeze' helped fuel the price surge as traders were forced to buy back their positions.

The US presidential election could play a crucial role in the trajectory of the Bitcoin. Donald Trump claiming to be pro-crypto, recently lost ground to Democratic candidate Kamala Harris.

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