Crypto Currents: Bitcoin jumps as short liquidations fuel rebound

Bitcoin reclaimed the $93,000 level as short sellers are squeezed, while analysts see massive upside for Coinbase. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

SHORTS SQUEEZED AS BITCOIN POPS: According to market data, bitcoin (BTC-USD) has jumped back above $93,000, fueled by short liquidations and renewed institutional interest. Data from OptionCharts, analyzed in a report from CoinDesk, shows that options tied to BlackRock’s (BLK) spot bitcoin ETF have now cracked the top 10 list of active contracts in the U.S.. The report notes that these options trail only major tech heavyweights like Nvidia (NVDA), Tesla (TSLA), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Intel (INTC). Elsewhere in the sector, CoinDesk notes that Iren (IREN) is targeting a convertible note issue of up to $2.3B, a move that sent its shares lower.

ARK INVEST BUYS COINBASE: Market observers are growing increasingly bullish on crypto equities, with recent headlines suggesting Coinbase (COIN) could soar 90% as its “everything exchange” vision takes shape. Cathie Wood’s Ark Invest is also doubling down; according to the firm’s trade notifications, the fund purchased additional shares of Coinbase and Robinhood (HOOD) on Tuesday.

STRATEGY ENGAGES MSCI: Adoption continues to mature across the landscape. Reuters reports that Strategy (MSTR) is actively engaging with MSCI regarding a potential exclusion from its indexes. In the derivatives space, the CME Group (CME) has launched a bitcoin volatility index to support institutional trading. Additionally, Grayscale’s chainlink (LINK-USD) ETF has listed on the NYSE Arca, causing the asset’s price to jump. On the payments front, Cointelegraph notes that the Bitcoin network now settles volumes comparable to Visa (V) and Mastercard (MA).

JAPAN EYES TAX CUT: Governments are refining their regulatory approaches. Cointelegraph reports that Japan’s new crypto tax proposal could cut rates to 20%, potentially waking a “sleeping giant” of retail investors. In the UK, parliamentary records show that a new law has passed formally recognizing crypto as property. Meanwhile, SoSoValue reports that U.S. spot XRP (XRP-USD) ETFs are nearing $1B in assets, becoming the fastest-growing in the market.

PRICE ACTION: As of the time of writing, bitcoin (BTC-USD) is trading around $92,655.71, while ether (ETH-USD) is trading at $3,103.64, according to price data from CoinDesk.