Crypto relief: Bitcoin jumps 10% as it bounces from 10-month low

By:
on Sep 9, 2022
  • Bitcoin price is up more than 10% as bulls break above $21,000 following a bounce from BTC’s retreat to 10-mon
  • The BTC price has been very sensitive to a rising dollar and showed an inverse correlation since May.
  • The price jump also follows a massive shorts liquidations of over $343 million in less than two days.

Bitcoin rose more than 10% on Friday afternoon as crypto rallied amid widespread gains for stocks. The flagship cryptocurrency hit an intraday high of $21,383 on major crypto exchanges according to CoinGecko data, up from its 24-hour low around $19,210.

Why Bitcoin price is up

In a CNBC report highlighting the gains, CNBC Business News’ Kate Rooney said the world’s largest cryptocurrency by market cap has broken higher following a rebound from 10-month lows hit earlier in the week.

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Bitcoin’s rally comes as the US dollar eased up following an extended strengthening against a basket of major global currencies. But as the dollar index fell on Friday, Bitcoin (BTC/USD) took cue to add to Thursday’s upside from below $20,000.

On Bitcoin hitting forward gear as the dollar struggled, the CNBC anchor observed:

It’s been particularly sensitive to the rising dollar in recent months. You can see that inverse correlation on the chart picking up in May or so,” she noted. The chart she was referring to shows bitcoin price falling below $30k and continuing lower even as the US dollar rose amid the crypto market crash.

Another factor at play as BTC picks some bear market rally has been the strong uptake in short liquidations. Just in the past 24 hours or so, nearly $343 million crypto shorts were liquidated – the largest short liquidations for over a month according to data from Coinglass.

As reported, Bitcoin’s price jump above $21k also comes as today’s biggest crypto news saw Sam Bankman-Fried’s crypto exchange FTX reveal it had acquired a 30% stake in SkyBridge Capital. Anthony Scaramucci’s SkyBridge is to add $40 million worth of cryptocurrencies to its balance sheet.

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