The cryptocurrency markets have experienced a recent rebound as Bitcoin climbs by a total of 4% to break back above the $8,000 level once again. The strongest performer over the past 24 hours is Litecoin with a 14.67% price increase, closely followed by EOS (+8.40%), and Binance Coin (6.81%).
This is a very interesting time for cryptocurrencies to rebound higher as data from Bloomberg has suggested that the interest for investors in shorting the American stock market, the S&P 500, has reached a high not seen since 2015.
The data from Bloomberg shows that the short interest as a percentage of shares outstanding on the S&P 500 ETF Trust has climbed to a high of +7%, a figure which has not been seen since the US Federal Reserve started to increase interest rates in 2015.
There are a host of reasons to explain why the short interest in the American stock market is rising to 4-year highs with one of the primary reasons revolving around the increasing tension between the US and China trade war. Furthermore, the US Federal Reserve are adamant that they will be holding the Interest Rate at 2.5% during their upcoming Interest Rate decision meeting, however, the market is predicting a rate cut.
Taking matters one step further, the increased interest in shorting the US Stock market may simply be due to the fact that S&P 500 is nearing its ATH at this moment in time.
Meanwhile, the recent cryptocurrency rebound has now allowed the entire market cap for the entire industry to reach a high of $253 billion. It now currently sits around $10 billion away from the 2019 total market cap 2019 high of $263 billion.
Bitcoin is now trading back above the $8,000 level and is now positioning itself to make an attempt at the 2019 high at around $8,200. If the bullish pressure can cause Bitcoin to break above the $8,200 level, further higher resistance above can be located at $8,600, $8,888, $9,000, and $9,326.
The cryptocurrency market is now nearing the 2019 high market cap level, currently sitting $10 billion off of the mark. In the meantime, the interest in shorting the American stock market has now reached a high not seen since 2015. If the short interest continues to mount, causing the S&P 500 to turn away from it’s high, the entire cryptocurrency market would be hopeful that some of the money leaving the American stock markets begins to enter the cryptocurrency industry.