Bitcoin, the top cryptocurrency by market capitalization, has made a spectacular V-shaped recovery, soaring to an intraday high of $91,107, according to data from CoinGecko.
The week started on a bad note, with hawkish comments from the Bank of Japan and China suddenly doubling down on its anti-crypto stance, sending prices of major coins below the $84,000 level at one point.
Commodity trader Peter Brandt hastily predicted that Bitcoin could plummet to $40,000, while analyst Chris Burniske confidently stated that the cryptocurrency is on a downward trajectory.
However, the bulls made a spectacular comeback on Tuesday, easing all recent losses.
The reason Bitcoin (BTC) was able to soar is probably because there was a lot of bullish news.
As reported by U.Today, the $10 trillion financial giant Vanguard, which in the past has stubbornly ignored and rejected the burgeoning sector, has given access to a slew of crypto exchange traded funds (ETFs).
“Regardless of whether people are excited about it now or not, cryptocurrencies are quickly becoming mainstream,” Bitwise CEO Hunter Horsley said in response to the recent U-turn.
Second, Bank of America Private Bank and Wealth Management, a division of Bank of America that serves extremely wealthy clients and manages large amounts of assets (more than $2 trillion), announced that starting in January, it will allow advisors to allocate between 1% and 4% in Bitcoin.
Massive wipeout of virtual currency shorts
According to data provided by CoinGecko, approximately $221 million worth of shorts were erased in the past four hours alone.
Short positions accounted for 93% of all shorts in the last 24 hours.
