The price of the flagship cryptocurrency Bitcoin has recently surged to surpass the $71,000 mark, while the price of the second-largest cryptocurrency Ethereum moved up over 20% in a single day, with an analyst now suggesting an upcoming short squeeze could lead to new highs.

According to popular cryptocurrency analyst Willy Woo, the price of BTC surged over 6.5% in a single day and ETH moved up to the $3,800 in a massive daily move over a short squeeze that liquidated one month of short positions on BTC.

That short squeeze, he suggested, could be followed by another one that would see the price of the flagship cryptocurrency moves to a new all-time high. Bitcoin, it’s worth noting, is currently very close to its all-time high, which was slightly above the $73,500 mark.

Data shows a dramatic decrease in short BTC positions within the last 24 hours, plummeting from 291 BTC to just 165, indicating that nearly half of these bearish bets were liquidated as Bitcoin’s price climbed rapidly. This triggered a cascade of buy orders from those scrambling to cover their short positions.

The catalyst for the broader market surge appears to be news related to the potential approval of spot Ether exchange-traded funds (ETFs) in the U.S as the Securities and Exchange Commission (SEC) has abruptly requested that the exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.

Before any trading can begin, issuers of spot Ether ETFs must receive the go-ahead on their S-1 registration statements, with the SEC having no set deadline to review these filings.

The SEC’s ongoing investigation into Ether, the native cryptocurrency of the Ethereum blockchain, has intensified over the last few months, especially after the network’s transition to a Proof-of-Stake protocol.

Should Ether be classified as a security, it could provide the SEC with a basis to deny the applications for spot Ether ETFs.

Featured image via Unsplash.

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