Bitcoin (BTC) price witnessed the biggest short selling of this month on Tuesday evening. Because the cryptocurrency has risen above $ 28,000. The largest cryptocurrency rallied as high as $28,150 in a matter of hours after trading sideways around $26,800 for most of the day. It recently dropped some of its gains to around $27,900. So what’s next?
Bitcoin price caused short squeeze
According to CoinGlass data, investors who took positions for prices to fall have lost $36.6 million in liquidation in the past 24 hours. This was the largest amount of short liquidation seen since May 28. The price surge comes after a number of major financial services institutions announced major crypto startups, illuminating a deteriorating mood amid increased US regulatory pressure in recent weeks, including lawsuits against crypto exchanges Binance and Coinbase.
Banking giant Deutsche Bank announced on Tuesday that it has applied for a crypto asset custody license in Germany. Crypto exchange EDX Markets, which received funding from financial heavyweights such as Charles Schwab (SCHW), Citadel Securities and Fidelity Digital Assets, started offering trading with BTC and Ethereum (ETH) on the same day. Last week, investment management giant BlackRock (BLK) surprised the markets by applying for a spot BTC exchange-traded fund (ETF). Brent Xu, CEO and co-founder of decentralized finance (DeFi) bond market platform Umee, said:
The Bitcoin rally is definitely correlated with the news of all these big traditional financial institutions looking to get seriously involved in the crypto asset ecosystem. It is clear that BlackRock, Fidelity and others have client bases willing to invest in BTC and other crypto assets through ETFs and other more traditional investment vehicles. This news has served to somewhat dampen the relatively bleak regulatory environment the United States is in, and it also seems to indicate that these major players want a regulatory environment that is both clearer and fairer than what currently exists.
InvestAnswers: The bull run is coming
Meanwhile, the anonymous server of InvestAnswers is telling its 444,000 YouTube subscribers that, based on historical price action, Bitcoin’s next halving, expected in April 2024, could spark a bull run that will last more than a year. He predicts that Bitcoin will reach $157,279 on September 19, 2025. Bitcoin has been on the rise after previous halvings that happen every four years. Next year’s Bitcoin halving will reduce the amount of new BTC entering the market from 6.25 Bitcoins per block to 3,125 Bitcoins per block.
According to the trader, the price target for September 2025 becomes more likely if institutional adoption rises, as BlackRock managed to launch an exchange-traded fund (ETF) after applying for approval last week. However, the investor warns that if macroeconomic conditions unexpectedly and seriously deteriorate, the halving event could only result in Bitcoin returning to its previous all-time high.
Michael van de Poppe awaits these levels
Popular analyst Michael van de Poppe maps the next target for Bitcoin price. Bitcoin price has been rising significantly over the past few days after recovering from monthly lows below $25,000. The analyst believes that another pullback may be on the horizon and this could be a better buying opportunity for investors. However, he suggests that a potential long entry could be around $26,000 and if it breaks $27,500 it could push the price closer to $30,000.
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