Why did Bitcoin spike 5% on Monday?
According to the analyst, the recent surge in the first cryptocurrency's price was driven not by an influx of new investors, but by traders closing their short positions.
The expert noted that there have been quite a few short bets on Bitcoin's decline lately. When the coin's price began to rise, traders who were short had to close their positions, which triggered a sharp spike in quotes.
At the same time, the analyst stressed that this growth was not associated with the emergence of new Bitcoin buyers. He said the situation in the crypto market remains ambiguous, and investors should exercise caution.
The expert recommends closely monitoring developments and not jumping to conclusions. Despite today's growth, the overall picture in the cryptocurrency market remains rather unstable.