The price of bitcoin surged more than 2% on Thursday, 8th September, nearing $630 as speculators caused the digital currency to extend gains produced earlier this week.
The digital currency’s climb did not coincide with any major news catalysts, and while trading volume picked up to the last few sessions, it was still generally low.
Considering these tepid market dynamics, a short squeeze likely fueled bitcoin’s more than 2% gain, Petar Zivkovski, director of operations at leveraged bitcoin trading platform Whaleclub, told CoinDesk. At press time, the digital currency had reached a high of $628.75 at 12:30 UTC, according to the CoinDesk USD Bitcoin Price Index.
This climb took place after a six-day period when long exposure, as measured by total position size, averaged 87%, Whaleclub data reveals. The increase built upon gains created earlier in the week, including bitcoin’s rise above $600 on Sunday, 4th September, the third consecutive session where long exposure exceeded 80%.
The $600 figure represented a key psychological barrier, as the digital currency had been trading below this level for more than a month after a Bitfinex security breach on 2nd August resulted in the exchange losing 120,000 BTC.