Bitcoin, the leading cryptocurrency by market capitalization, has managed to pull off a stunning V-shaped recovery, surging to an intraday high of $91,107, according to CoinGecko data.
This week started on a bad note, with the price of the leading coin briefly slipping below the $84,000 level due to a combination of the hawkish Bank of Japan (BoJ) comments and China doubling down on its anti-crypto stance out of the blue.
Commodity trader Peter Brandt rushed to predict that BTC could crash to $40,000 while analyst Chris Burniske confidently stated that the cryptocurrency was on track to plunge lower.
However, the bulls made a stunning comeback on Tuesday, paring all of the recent losses.
A slew of bullish news is likely the reason why Bitcoin (BTC) managed to surge sharply higher.
As reported by U.Today, $10 trillion financial giant Vanguard has enabled access for a slew of cryptocurrency exchange-traded funds (ETFs) after stubbornly ignoring and rejecting the burgeoning sector in the past.
"Whether people are stoked right now or not — crypto is rapidly entering the mainstream," Bitwise CEO Hunter Horsley said in response to the recent U-Turn.
Secondly, Bank of America Private Bank and Wealth Management, which is a division of Bank of America that handles very wealthy clients and manages large amounts of assets (over $2 trillion), has announced it will allow advisors to allocate 1-4% to Bitcoin starting in January.
Massive wipeout of crypto shorts
According to data provided by CoinGecko, roughly $221 million worth of shorts has been wiped out over the past four hours alone.
Short positions account for 93% of all shorts over the past 24 hours.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team