Hong Kong: Cryptocurrency surged to the top of its recent range on Monday as short sellers rescued after a strong week, and traders hope that some positive comments from influential investors may signal an improvement in fragile sentiment.
Bitcoin once rose by 12.5% to US$39,850, the highest level since mid-June since the Asian session, while Ethereum hit a three-week high of US$2,344. After Bitcoin’s best-performing week in nearly three months, the move put pressure on short sellers.
Last week, cryptocurrency enthusiast and Tesla boss Elon Musk stated that the automaker may resume accepting Bitcoin once it conducts due diligence on its energy use. It suspended such payments in May, leading to a sharp sell-off in cryptocurrencies.
Twitter boss Jack Dorsey also stated last week that digital currencies are an “important part” of the social media company’s future. On Sunday, the City AM newspaper in London cited an unnamed “internal “People” reported that Amazon hopes to accept Bitcoin payments before the end of the year.
Brokers said that these comments were combined enough to finally lift the market from the bottom of the stable support since the May crash, and the data also showed a large number of short sellers liquidation-indicating that many people may 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 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% at $38,064, putting it within sight of resistance around June’s $41,341.57 peak just a week after it was testing support at $29,500.
Ether finally rose by 5% to US$2,304