Bitcoin surges past $24,000 to hit 2-week high

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Bitcoin bolted past $24,000 for the first time in two weeks after gaining more than 8% in the past 24 hours, likely the result of the kind of short squeeze that has historically sent prices higher. The percentage increase was the largest since BTC jumped 10.5% on September 9.

The biggest cryptocurrency by market capitalization had fallen below $21,600 at various times in recent days, amid growing investor concerns about crypto regulation, particularly targeting the stablecoin market, and about future steps by the US Federal Reserve to tame inflation.

But those concerns appeared to quickly dissipate as bitcoin rose above $24,100 in the afternoon before retreating slightly.

Data from crypto data provider Coinglass showed that traders betting on price moves liquidated about $65 million of bitcoin in the past 24 hours, with about $60 million of that in short positions.

Crypto-related stocks also rose, with both exchange Coinbase ( COIN ) and bitcoin miner Marathon Digital Holdings ( MARA ) rising 15%. Business software company MicroStrategy (MSTR), a major BTC holder, recently rose more than 9%.

Ether (ETH) was up 5.5% to recently trade at $1,645. The CoinDesk Market Index rose 4% for the day.

Lucas Outumuro, head of research at blockchain research firm IntoTheBlock, said investors also found reason for optimism in Tuesday’s tepid US consumer price index (CPI), which showed inflation fell slightly to 6.4% year-on-year, although it failed to meet analysts’ expectations. “Since the market reaction to the CPI print was positive even though it was higher than expected, I think this was seen as a sign of strength for the rally to continue in risk assets overall,” Outumuro told CoinDesk.

Riyad Carey, research analyst at crypto data firm Kaiko, also said that markets may also have already faced concerns about increased regulation related to stablecoins, including Binance’s BUSD token.

The story continues

“Crypto has had some additional catalysts with the BUSD news, which has largely been absorbed, and I think today was a reflection of some of the regulatory fears — and immediate fears around BUSD — that eased,” Carey told CoinDesk.

UPDATE (February 15, 2023, 20:41 UTC): Updating the headline and adding historical context to the size of bitcoin’s 24-hour increase.

UPDATE (February 15, 2023, 20:56 UTC): Updates to reflect recent liquidation of BTC short and other positions.

UPDATE (February 15, 2023, 21:05 UTC): Updating price chart.

UPDATE (February 15, 2023, 22:39 UTC): Adds analyst commentary.