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Bitcoin ($BTC) has cleared $80,000, pushing crypto-linked equities far above the wider tape, but the move carries the fingerprints of a forced unwind more than a shift in underlying demand.
Strategy (NASDAQ:MSTR) surged 12% to $148.55 and Coinbase Global (NASDAQ:COIN) gained 11% to $192.43 on Friday morning, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) slipped 0.1%, isolating the rally to a narrow corner of the market.
The mechanism Nic Puckrin, founder of Coin Bureau, described is straightforward: once Bitcoin broke through a key resistance level, short positions were forced to close and that pressure amplified the move.
Crypto derivatives traders had also built heavy call-option positions ahead of the break, which added fuel when the level gave way.
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