Bitcoin Crushes Shorts, Hits $80,000 in Record-Breaking Rally

Bitcoin has been on a tear, climbing towards $80,000 and eliminating a record $4 billion in short bets. According to data from CryptoSlate, Bitcoin reached as high as $78,449 on Friday, gaining over 10% in the past 24 hours before settling at $77,873.

The rally began after the US Treasury announced it would increase liquidity-support buybacks for government debt, sending long-term yields lower and boosting risk appetite. President Donald Trump's meeting with crypto executives at the White House and the SEC and CFTC's industry-friendly proposals also contributed to the momentum.

Institutional demand has increased, with spot Bitcoin exchange-traded funds attracting over $1 billion since Wednesday. Derivatives positioning has amplified the move, with more than $4 billion in Bitcoin shorts being liquidated as prices jumped from around $65,000 to above $75,000.