However, the recent week-long market rally, which saw XRP jump around 100% in a matter of days, has helped the bulls regain control of Ethereum and Litecoin, as the altcoins saw their short interest drop by 60% and 44%, respectively, in a matter of hours on Bitfinex.
This points to a short squeeze, where bears were likely forced to close their positions, adding further fuel to the bullish price action.
In the case of Litecoin, the timing of this short squeeze is interesting, as Charlie Lee, the coin’s creator, recently responded to bearish traders and major hedge funds that have been actively blasting the cryptocurrency’s current valuation and future outlook.
There is now roughly $28 million in ETH and $6 million in LTC being sold short on Bitfinex.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.