Monday Feb 1 2021 12:08
2 min
First came GameStop, next was silver. Could Bitcoin be the next to get the Reddit treatment?
Hedge funds are extremely net short on Bitcoin futures. According to the latest CFTC Traders in Financial Futures report, the net short position is the largest ever. Add to this the recent move by Elon Musk to put #Bitcoin in his Twitter profile, which sparked a $5k rally in Bitcoin, and you get a recipe for a potential short squeeze on Bitcoin.
Over the weekend Musk expanded on his thoughts on Bitcoin. “I am a supporter of bitcoin,” he said in a conversation on the Clubhouse app. “I was a little slow on the uptake.” Musk added: “I think bitcoin is on the verge of getting broad acceptance by conventional finance people.”
So far though the focus is on Ripple, with XRP surging 150% since the end of last week with the crypto featuring heavily in the influential /wallstreetbets Reddit thread.
But the interest in Bitcoin won’t diminish. Indeed it seems more likely that the #silversqueeze will not last. There are many reasons for this, principally the sheer size of the market.
Saifedean Ammous, author of The Bitcoin Standard, summarized why trying to squeeze silver may be costly.
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