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Apple Has Bought BTC: Bulls Smell a Short Squeeze
For over a month, the cryptocurrency markets have languished under the throes of bearish sentiments. Prices have fallen abysmally from their previous highs, leaving the global cryptocurrency market cap at $1.3 trillion.
This pervasive sentiment has led to a spike in the number of short positions for the assets after Bitcoin fell to lows of $28K. Despite the increase in the number of short positions, there is a whirlwind of rumors of massive institutional purchases with Apple said to have splurged over $2 billion on Bitcoin.
Rising BTC Short Positions
BTC short positions have been on the rise following Bitcoin’s lackluster performance over the last few months. After surpassing $64K a few months ago, the asset tumbled by over 50% to touch a low of $28,893 that it had not reached since the start of 2021.
While the community puts the blame on Elon Musk for statements regarding the network’s environmental sustainability, others are pinning the blame on Chinese regulatory authorities for the sustained crackdown on cryptocurrencies.
Both of these situations have led to rising short positions as BTC/USD shorts have surpassed the records set in 2019. Over 13,600 BTC/USD shorts have been recorded while 51,000 long positions were observed on the derivatives exchange, Bitfinex. This leaves the market ripe for either a short squeeze or a long squeeze as investors hold their breaths.
Apple’s $2.5 Billion Purchase
Bitcoin believers are amplifying the rumors of Apple’s $2.5 billion purchase. The exact amount of the purchase is still shrouded in mystery with Galaxy Trading and Chainleak’s CEO putting the figure around $2.5 billion.
Proponents of the rumor are citing Apple’s advertisement for a Business Development Manager with expertise in alternative payments. Boxes that must be ticked before the assumption of the role include a five-year experience working with alternative payment providers such as “cryptocurrency”.
Recall that in 2019, VP Apple Pay, Jennifer Bailey said that cryptocurrencies are interesting and they are watching them with keen interest.
On The Flipside
The Short Squeeze
With the speculation around heavy institutional interest in Bitcoin like Apple’s rumor of a $2.5 billion purchase, the market could witness a short squeeze.
The occurrence of short squeezes in BTC/USD markets is fairly common and in the event, a strong pump will leave short sellers in the mud leading to liquidations.
Already, firms like Square and MicroStrategy are taking advantage of the dip in prices to bolster their asset base. On June 21, MicroStrategy acquired an additional 13,005 BTC for around $489 million which brings the total amount of BTC owned by the firm to over 105,000 BTC.
An advertisement for Coin Cloud directed by Spike Lee brings BTC into focus to stimulate the adoption of cryptos. Speaking of the future, the experienced director noted that old money is not going to make things better and added that “the digital rebellion is here.”
The short squeeze will trigger a price rally that will inexorably lead to the increase of Bitcoin’s market capitalization. Bitcoin has a market capitalization of $611 billion which is a far cry from a former market cap of over $1 trillion.
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