Bitcoin leaps 12% to six-week high
Cryptocurrencies popped to the top of recent ranges on Monday as short sellers bailed out in the wake of a strong week and while traders hoped a handful of positive comments from influential investors might signal a turnaround in fragile sentiment.
Bitcoin rose as far as 12.5% to hit $39_850_ its highest since mid-June during the Asia session_ while ether hit a three-week peak of $2_344. On the heels of bitcoin's best week in almost three months_ the move put the squeeze on short sellers.
Last week_ cryptocurrency enthusiast and Tesla (TSLA.O) boss Elon Musk said the carmarker would likely resume accepting bitcoin once it conducts due diligence on its energy use. It had suspended such payments in May_ contributing to a sharp crypto selloff.
Twitter (TWTR.N) boss Jack Dorsey also said last week that the digital currency is a "big part" of the social media firm's future and_ on Sunday_ London's City A.M. newspaper reported - citing an un-named "insider" - that Amazon is looking to accept bitcoin payments by year's end.
Brokers said that taken together the remarks were enough to finally lift the market from the floor of support where it has held steady since a May plunge_ while data also pointed to heavy short-seller liquidations - suggesting many might have given up.
"Over the last five trading sessions we've seen general near-term bullishness in the market_ driven by key technicals_ as well as recent positive comments_" said Ryan Rabaglia_ global head of trading at digital asset platform OSL.
"With a record $1.2 billion in shorts liquidated over the past 24 hours_ the outlook and momentum for the week ahead is positive_" he said.
Bitcoin was last up 8% at $38_064_ putting it within sight of resistance around June's $41_341.57 peak just a week after it was testing support at $29_500.
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