On the cryptocurrency derivatives exchange Binance Futures, contracts for the first cryptocurrency (bitcoin) reached $ 48 thousand, after which they returned to the average market values.
The price of Bitcoin perpetual futures on the Binance Futures platform on the morning of July 26 rose above $ 48 thousand, adding 31%.
This happened after the main cryptocurrency (bitcoin) rose in price to a local maximum of $ 39.8 thousand, the digital coin is trading at $ 38.7 thousand.
Futures is a contract to sell or buy an underlying asset in the future at a predetermined price.
The cost of bitcoin began to grow rapidly after unconfirmed information appeared on the network that Jeff Bezos‘ Amazon platform would begin accepting cryptocurrency for payment by the end of this year.
Picture perfect short squeeze on $BTC. This belongs in a textbook. pic.twitter.com/FRLXtcCXiw
— Alex Krüger (@krugermacro) July 26, 2021
According to cryptanalyst and macroeconomist Alex Kruger, bitcoin has risen sharply by 14% due to the short squeeze.
This is a massive liquidation of short positions as a result of a sharp rise in the price of an asset, which leads to even greater growth.
