Bitcoin Price Stalls Below $80,000 as Rally Fades
Bitcoin's price has stalled just below $80,000 after a rapid ascent that saw it surge by over 20% in the past week. The cryptocurrency peaked at around $79,500 on Friday, its highest level in about three months, driven by Treasury bond buybacks, a weaker dollar, ETF demand, regulatory optimism, and a historic short squeeze.
However, market analysts warn that the rally may be running out of steam, as the forced buying mechanism that powered the initial leg is fading. The $4.3 billion in bearish crypto positions liquidated over the past few days was largely due to short sellers being forced to buy back their positions as prices rose.
Shawn Young, chief analyst at MEXC Research, noted that the Treasury's bond move 'opened a pressure valve,' but the market has priced this intervention like a broader change in monetary conditions. Dominick John from Zeus Research also pointed out that once crowded short positions are cleared, the rally must stand on its own through fresh spot demand, liquidity, and stronger fundamentals.
The US spot Bitcoin ETFs attracted $1.9 billion in net inflows last week, their strongest weekly total of 2026, according to SoSoValue data. However, it remains unclear whether this demand can persist after such a rapid price rise.