Bitcoin Rips Above $80,000 on Short Squeeze and Institutional Buying

Bitcoin surged above $80,000 on Tuesday, building on its strong rebound fueled by renewed institutional inflows and improving risk sentiment.

The cryptocurrency's latest advance follows a dramatic rally that began last week, during which it gained more than 20% in just three days, its strongest three-day performance since 2023.

A short squeeze is believed to have wiped out over $4 billion in bearish positions, according to CNBC. Investor appetite for risk assets strengthened after the U.S. Treasury announced plans to double purchases of longer-dated government bonds.

Institutional participation has also increased, with U.S. spot Bitcoin exchange-traded funds recording net inflows of $1.92 billion last week, their strongest weekly performance since October 2023.