Bitcoin breaks the $100,000 mark: short squeeze revolution!

Bitcoin breaks the $100,000 mark: short squeeze revolution!

On May 13, 2025, Bitcoin experienced a remarkable increase and surpassed the $100,000 mark. This rapid price rise is due to a so-called short squeeze, which was triggered by traders closing positions that speculated on falling prices. This development not only drove prices up, but also increased the demand for Bitcoin enormously. Loud IT Boltwise The digital currency market is still known for its high volatility, which makes these price movements all the more remarkable.

The background to this short squeeze is rising funding rates in the crypto markets, which reflect the costs that traders have to pay to hold their positions. However, it is not just financing rates that are involved in these developments. Loud FXStreet An increase in open interest in Bitcoin and negative funding rates also indicate an impending price move. Analysts have identified aggressive buyers investing in Bitcoin, seen as a sign of redistribution.

Technical factors and market dynamics

The $20,000 level is considered a key psychological level and analysts warn that a weak rally below this level could lead to a decline. Despite these risks, Bitcoin is currently showing positive momentum but still moving within a range. Will Clemente, Lead Insights Analyst at Blockware, highlights that Bitcoin has rarely fallen below the 200-day moving average in the past. He recommends buying Bitcoin based on the assumption that the price has successfully recovered after similar positions.

Additionally, the increase in cumulative volume delta (CVD) shows that buyers are dominating the Bitcoin market. CryptoQuant CEO Ki Young Ju continued that 10% of buy market orders could come from short position unwinding, but currently only 1%. This suggests that Bitcoin could experience another major short squeeze in the near future, which could explain the current price movements.

Market psychology and future outlook

Bitcoin's price rally has boosted confidence in digital currencies and could potentially attract new investors. Many investors are speculating that the Bitcoin price will rise further. Nevertheless, experts warn about the inherent volatility of cryptocurrencies, which can have a major impact on the market landscape. Regulators are closely monitoring developments and may introduce stricter regulations in the future.

Given the dynamic and unpredictability of the digital currency market, Bitcoin's current run-up is both a sign of existing trends and a challenge for traders speculating on the next price move. The developments surrounding Bitcoin remain extremely interesting, especially in the context of economic uncertainties and market psychology, and challenge investors to adapt their strategies accordingly.