Cryptocurrencies rally after suspected short squeeze

August 22, 2018
Chris Wheal

A suspected short squeeze drove prices of cryptocurrencies higher on Wednesday, pushing bitcoin to a two-week high above $6,800.

Cryptocurrency prices rise: bitcoin hits two week high

Cryptocurrency exchanges have reported near-record levels of short positions – speculating on continued losses for digital currencies.

Speculators betting on these continuing losses – short sellers – may have been “squeezed”, or caught on the wrong side of their trade after a recent modest rally – forcing so-called “short covering”, meaning they have to buy back the assets to cover their bets and driving a sharp rally.

Bitcoin hit a peak of $6,840.80 on Wednesday, its highest level since 7 August.

Investors hit social media welcoming the rally. Cheds Trading said on Twitter: “Bitcoin bulls just put a major down payment on a reversal.”

Price round up

Here’s a round-up of Wednesday’s price movements for the top 10 cryptocurrencies at 11am [London time]:

  • Bitcoin +5.4% at $6,689
  • Ethereum +2.1% at $285.14
  • Ripple +1.8% at $0.34
  • Bitcoin cash +2.1% at $550.04
  • Eos +3.5% at $5.08
  • Stellar lumens +2.2% at $0.22
  • Litecoin +3.8% at $57.45
  • Tether -0.2% at $1
  • Cardano +0.8% at $0.10
  • Monero -0.5% at $95.21
Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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