Hong Kong: Bitcoin prices jumped more than 5% in the span of a few minutes on Wednesday, pacing a rally in cryptocurrencies as market watchers cited potential short covering for the move. The surge from around $6,465 to $6,840 began at 9am Hong Kong time and took about seven minutes, according to composite pricing on Bloomberg. The cryptocurrency was trading around $6,710 at 11.03am, near a two-week high. It’s still down 53% this year.

The number of short positions in Bitcoin on Bitfinex, one of the world’s largest virtual currency exchanges, has climbed near an all-time high, said Timothy Tam, chief executive officer of CoinFi, a cryptocurrency data analysis company.

“When there’s a record number of shorts, if there’s a large explosive price movement up like this, it means people will need to cover their shorts quite quickly," Tam said in a phone interview. “It’s almost like a domino effect."

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