Bitcoin Nears $80,000 as Short Squeeze Exceeds $4 Billion
Bitcoin's price surge has liquidated over $4 billion in short bets and pushed it to a three-month high, nearing $80,000. The cryptocurrency gained more than 10% in the past 24 hours, with prices reaching as high as $78,449 before easing to $77,873.
The rally began after the US Treasury announced plans to double liquidity-support buybacks for long-term government debt, improving risk appetite and sending yields lower. Institutional demand also increased, with spot Bitcoin exchange-traded funds attracting over $1 billion since Wednesday.
CryptoQuant's Bitcoin Bull Score Index has climbed back to 60, marking its first return to bullish territory since October 2025. However, some experts remain skeptical that the current rally marks a durable change in market trend. Joao Wedson, CEO of Alphractal, believes this move is just a relief rally and that nothing has changed yet.
Nicolai Søndergaard, senior research analyst at Nansen, notes that short covering amplified the rally rather than created it. He adds that ETF inflows and broader spot demand supported the advance, helping Bitcoin reclaim its 20-week and 200-day moving averages.