Crypto markets inflated today, seeing notable gains amongst the top 100 coins in just below an hour

Total market capitalization of all cryptocurrencies shot up over $12 million in just over an hour to peak at $222.8 million, before dropping slightly to $291.7 million by press time.

Source: coinmarketcap.com

The present short crush was by numerous officially anticipated that would happen because of the uncommonly high number of bitcoin short positions in the market. On the Bitfinex trade, the proportion of bitcoin short to bitcoin long positions reached 1.4 on August 15, the largest amount since November, a year ago.

From then, the short-to-long proportion has kept on climbing, reaching a high of 1.5 on Tuesday. The present jump in bitcoin costs, however, was joined by a fall in short positions, demonstrating that the move was at least partially driven by traders leaving their short positions

Source : bitfinex.com

At the point when brokers leave their short positions, frequently alluded to as short covering, they need to purchase back bitcoins in the open market, which can now and then reason huge cost increases. Also, with the short-to-long proportion still at abnormal high states not seen since a year ago, the activity may not be over yet.

As indicated by a Bloomberg meet on Wednesday, CEO at cryptocurrency data analysis firm CoinFi, Timothy Tam, "when there's a record number of shorts, if there's a substantial unstable price development up this way, it implies individuals should cover their shorts rapidly," including that "it's relatively similar to a domino impact."