Bitcoin led a rally in cryptocurrencies on Wednesday where the world’s leading digital currency augmented $400 in just 20 minutes leaving questions whether the advance would be short-lived.
The Bitcoin jumped to a peak of $6,885.0 earlier today, the highest level since August 7, while currently trading 3.37 percent higher at $6,668.0.
Recently, the Bitcoin has been moving in a sideway direction after retreating from a high of $8,500 recorded on July 24.
The rally in the Bitcoin occurred directly after major cryptocurrency exchange BitMex went down for scheduled maintenance at 1am GMT.
Perhaps, the down period on BitMex has forced short sellers to buy more to cover their position and thereby pushing prices higher.
The number of short positions in Bitcoin on Bitfinex, one of the world’s biggest digital currency exchanges, has edged up to a record high, mentioned Timothy Tam, chief executive officer of CoinFi, a cryptocurrency data analysis company.
The rise in Bitcoin and other cryptocurrencies would depend on the decision expected today from the U.S. Securities and Exchange Commission into two proposed Bitcoin exchange-traded funds (ETF).
The Bitcoin is still almost 53 percent down this year, waiting for more liquidity from large investors who could put their money in Bitcoin ETFs in case it got approval from the SEC.
The top 10 cryptocurrencies are trading in green except the Monero, where EOS reported the biggest soar with 3.55 percent, according to CoinMarketCap.