Bitcoin is on a tear, shattering records against local currencies in Asia and South America after a powerful 7% daily jump. This surge has ignited excitement in the crypto world, with analysts hinting at a possible short squeeze that could push prices even higher.

New Peaks Conquered

On May 21st, Bitcoin reached a six-week high of $71,650, inching closer to its all-time high of $73,738 set in March. But the real story unfolds when we look beyond the US dollar.

Countries like Japan, Argentina, and the Philippines saw Bitcoin reach record highs in their local currencies. This can be partly attributed to weakening local currencies, like the Japanese yen, which has fallen against the dollar in recent months.

Inflation Fears Fuel Bitcoin's Rise

Argentina, grappling with high inflation, saw Bitcoin reach a peak of 63.8 million pesos, reflecting a growing trend of people seeking refuge in cryptocurrency as a hedge against a weakening peso. Similar trends were observed in other inflation-prone economies.

Short Squeeze on the Horizon?

Crypto analysts are buzzing about a potential short squeeze, where short-sellers are forced to buy back Bitcoin at a loss, further fueling the price rise. Recent liquidation data suggests a significant number of short positions have been closed, potentially paving the way for a squeeze.

Analysts Turn Bullish

With Bitcoin nearing its all-time high, even seasoned analysts are turning bullish. Trading firms like QCP Capital see Bitcoin potentially returning to $74,000 by December, citing significant buying activity for Bitcoin call options.

Buckle Up!

Bitcoin's price surge and the potential for a short squeeze have created a thrilling atmosphere in the crypto market. Whether Bitcoin conquers its all-time high remains to be seen, but one thing is certain: things are heating up in the world of cryptocurrency.