Bitcoin Breaks Back Above $39K in Biggest Single Daily Gain in 6 Weeks

Bitcoin briefly traded above $39,000 for the first time since June 16 and is currently trading in the green for the sixth consecutive day.

Prices have continued to rise since July 21, with Sunday’s current price hike representing the largest daily rise in more than six weeks. The world’s oldest crypto is changing hands for around $38,250, after it cooled slightly after hitting a monthly high of around $39,850.

“This price action is consistent with what we’ve seen in recent weeks,” said Daniel Kim, head of capital markets at Maple Finance. “USD interest rates have started to rise from their lows.”

Related: Is US Crypto Regulatory Bluster About to Take Action?

“We have also seen a significant increase in demand for USDC from institutional borrowers and sentiment appears to be optimistic following the news that Amazon is participating in bitcoin,” Kim added.

Datamish data showing that a short squeeze appears to have pushed prices up as those betting on bitcoin going lower had to sell in quick succession to cover with 231 bitcoin shorts that liquidated. The reason remains unclear.

One unconfirmed single-source story in City AM has reported that retail giant Amazon wants to accept bitcoin payments by the end of the year and is considering minting its own token by 2022. The retail giant is also looking for a Digital Currency and Blockchain Product Lead, CoinDesk Previously reported.

CoinDesk attempted to contact Amazon but received no response at press time.

Related: Market Wrap: Bitcoin Analysts Expect a Short Squeeze

Daily volume on the Bitstamp exchange is still relatively lower than the average of the previous days this year, but is beginning to show signs of rebound after the May outage.

Other notable cryptos in the top 10 by market cap are also making gains over a 24-hour period methour chain link, dot and bitcoin cash most between 8%-12%.

UPDATE (July 26, 2021, 2:14 UTC): Adds details about bitcoin’s short squeeze.

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