Bitcoin touches monthly high amid AMC-style short squeeze

Bitcoin prices hit their highest levels since mid-June on Monday morning after the digital currency saw traders put the squeeze on its short sellers.

The crypto saw a surge in value overnight and hit a value of US$39,065 at around 7.30am BST, the first time it has risen above US$39,000 since mid-June. As of 10am, the price had fallen back slightly but was still up 10.4% in the last 24 hours at US$38,193.

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Other popular cryptocurrencies also saw strong gains, with Ethereum rising 7.7% to US$2,333 while XRP, also known as Ripple, bounced 8% higher to US$0.65.

The surge in the price of Bitcoin has been attributed to a sharp squeeze on short positions against the cryptocurrency after technical analysts flagged up that the crypto may have been oversold.

Crypto markets may also have been given a boost by comments from () boss Elon Musk, who said last week that the electric car firm was likely to begin reaccepting payments in Bitcoin. The company had initially stopped accepting Bitcoin back in May amid concerns about the impact of its mining process on the environment.

() CEO Jack Dorsey may also have helped Bitcoin’s rebound after saying last week that digital currency will form a big part of the company’s future, while reports that Amazon is also looking to accept Bitcoin payments this year are also likely to have lifted market optimism.