Bitcoin Rockets Past $71,000 as Treasury Debt Buybacks Trigger Short Squeeze
Bitcoin has continued its upward trend, surpassing $71,000 on Thursday, following a surge of over 7% in the previous day. The US Treasury's decision to double its debt buyback operations has significantly improved market sentiment and liquidity conditions.
The increased Treasury buybacks have triggered a short squeeze across the crypto market, with Bitcoin experiencing extreme positioning imbalance, with shorts accounting for 96.6% of positions.
Renewed institutional interest is evident in the form of spot ETFs, which recorded an inflow of over $517 million on Wednesday, the highest single-day gain since early May.
The technical analysis suggests that Bitcoin's price continues to hold above major Exponential Moving Averages (EMAs), with the 200-day EMA at $71,463 reinforcing immediate trend support beneath spot. The Relative Strength Index (RSI) is hovering in overbought territory near 79, suggesting strong but potentially vulnerable upside pressure.