‘The Dip May Be Done’: Bitcoin Surges and Wipes Out 2022 Losses as Short Sellers Lose Millions
Bitcoin surged dramatically on Sunday night — rallying from $44,795 to highs of $47,317 in just four hours.
The world’s biggest cryptocurrency has now wiped out the losses seen so far this year after starting Jan. 1 at $46,730, CoinMarketCap data shows.
BTC’s sudden jolt also cements a remarkable recovery from the lows of $33,184.06 that was recorded back in January.
Bloomberg Intelligence’s Mike McGlone says the digital asset “has shown divergent strength” in 2022 and looks like it is breaching “key resistance” around its 50-week moving average.
Although Bitcoin has been dragged lower by the stock market so far this year, McGlone believes BTC is now “coming out ahead” as the first quarter draws to a close. In a research note, he wrote:
“Every day that the Federal Reserve wakes up to rising asset prices, our take is it becomes more concerned about related inflation and inclined to do something about it. Bitcoin is poised to come out ahead of what may be an overdue mean reversion for risk assets.”