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The founder and CEO of 10x Research, Markus Thielen, stated that the increase in Bitcoin’s value is linked to the closure of short positions that traders had established during the price correction in February.
According to him, the current rise is not driven by active purchases from investors but rather by a decrease in the number of bets against the price.
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“Traders are widely closing contracts that hedge against a price drop to $55,000 and $60,000. They have concluded that by the time of expiration, these positions are unlikely to be profitable, prompting them to exit. This has contributed to the price increase,” Thielen explained.
He pointed out that when such positions are closed, market participants on the opposite side of the trades are compelled to buy Bitcoin for hedging purposes. This creates additional demand and exerts upward pressure on the price.
However, according to Thielen, there are currently no signs of a widespread opening of new long positions. He indicated that the present dynamics are primarily attributed to technical factors rather than an influx of new capital into the market.
Previously, the head of research at the crypto platform Bitrue, Andri Fauzan Adziima, linked the rise in Bitcoin’s price to the activity of institutional investors and a reduction in coin supply following the halving.
