Bitcoin prices rallied today as many factors fueled gains

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Bitcoin prices have seen a brief jump this morning and are trading pretty close to … [+] their intraday high. (Photographic illustration by Chesnot / Getty Images)

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Bitcoin prices skyrocketed earlier in the day, pushing higher as the cryptocurrency benefited from several developments that could be seen as bullish.

The digital currency, which is the world’s largest in terms of market value, soared more than 6% in less than an hour, from $ 44,875.50 around 6 a.m. EDT to $ 47,650.40, according to data from CoinDesk.

Some market watchers have indicated that a short squeeze triggered this strong rally.

Daniel Joe, whose Twitter profile describes him as both a technical analyst and an author, posted a tweet illustrating how the rise in bitcoin prices coincided with several short contracts for the digital asset being liquidated.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

He wrote 539 #BTC shorts liquidated in 1 minute by sending #Bitcoin to 47k.

While more than one analyst pointed out that a short squeeze was fueling bitcoin higher this morning, some pundits were less convinced.

As for the current rapid rise in BTC, that might be a short squeeze, but that’s hard to say for sure, said Julius de Kempenaer, senior technical analyst at StockCharts.com.

At the end of the day, no matter where the demand is coming from, there has been / has been a lot of buying activity and this pushes the price up.

While de Kempenaer spoke about market dynamics, Marc Bernegger, board member of Crypto Finance Group, took a different approach.

The short squeeze was only partly responsible for today’s price movement and the main reason was that Federal Reserve Chairman Jerome Powell said the United States did not the intention to ban cryptocurrencies, he said.

Brett Sifling, Investment Advisor for Gerber Kawasaki Wealth & Investment Management, also spoke.

I don’t know what the short float looks like on Bitcoin, but I can’t imagine this had a big impact on the rally, he said.

I think the rally is because Jerome Powell and Gary Gensler gave some positive feedback yesterday, Sifling added.

Jerome suggested that the central bank wouldn’t ban crypto like China did. Gary mentioned the support for an ETF based on Bitcoin futures.

These comments, along with the debt ceiling mess / government shutdown / infrastructure bill / inflation worries in the US, are settling in during a favorable time for BTC.

Charlie Silver, CEO and Chairman of Permission.io, also commented on key government developments, most notably those involving the potential to get rid of the US federal government’s limit on its debt.

One of the main factors behind the positive rise in BTC is all the talk in Washington about removing the debt ceiling, he said.

Even though the debt ceiling has no real substance, at least every two years Congress and the President face the public on the need to continually increase federal debt, Silver said.

The only way the federal government can service this growing debt is for the Fed to buy federal bonds. In other words, increase the speed of the printing press.

Crypto is a response to the irresponsible management of the Fiat currency and we see all of that on the screen, he concluded.

Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.

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