Another critical factor is the heavy short interest in MicroStrategy shares.

Short sellers, currently short $6.7 billion worth of the stock, may eventually be forced to cover (buy back shares).

Our recent report noted this massive short position. As MicroStrategy shares surged by 10% last night, short sellers lost $670 million, bringing their total short position to $7.3 billion.

Part of this rally is likely driven by short-covering, and if Bitcoin breaks above $70,000, it could push MicroStrategy shares even higher, further squeezing short sellers.

On October 7, we released an update titled "Doubling Down on Bitcoin’s October Rally as MicroStrategy Shares Could Break Out."

With central banks like the Swiss National Bank and Norway’s Sovereign Wealth Fund investing hundreds of millions of dollars in MicroStrategy shares as a proxy for Bitcoin, we anticipated a potential breakout for MicroStrategy.

This, in turn, could trigger a "tail-wagging-the-dog" effect, driving Bitcoin’s momentum.

Watch our short but insightful video summary of our Bitcoin/crypto market research this week:

https://www.youtube.com/watch?v=fvCd0ld0688&t=25s