news 
Bitcoin Rebounds to $108K as Short Squeeze and FOMO Drive Monday Surge
The renewed energy in the markets has carried over nicely into the cryptocurrency space, with Bitcoin making a dramatic return to the $108,000 level as we head toward the weekend. Just four days ago, BTC was on the edge of dipping below the less-than-psychological $100,000 threshold. Retail traders who had been FOMOing heavily into Bitcoin pushed its price so high that some were starting to call it a bubble.
Panic selling in these same retail investors pulled the market downward, but now we are back on the upward trajectory. The price of Bitcoin surged from 105,000 dollars to over 107,000 in mere hours before further increasing to touch $108,000. This sudden move has brought joy to holders but also relief to soured market sentiment which, only weeks ago, had taken the industry to new depths of despair.
This recent surge was triggered by overzealous short sellers who were forced to cover their positions as the price rose unexpectedly, causing an avalanche of buying pressure that fueled the rapid upward movement. A spike in liquidations of short positions from $105,000 to $359,000 within a four-hour window is concrete evidence of this phenomenon. The surge, which was largely driven by FOMO and short squeeze, has led many observers to hypothesize about the return of a bull market.
However, it’s essential for traders to keep in mind that the current rally might not be sustainable due to signs of emerging weakness in institutional appetite. Data indicates that Bitcoin spot exchange-traded funds (ETFs) experienced net outflows of 4,600 BTC; this marks the first negative week for ETFs in eight.
Institutional investors may be taking profits or reassessing after a strong run-up of several months. This level of volatility is at an all-time high, and traders must stay vigilant about market trends, as even the briefest of pauses could trigger a massive reversal.
Source: nulltx.com
