Bitcoin Shatters $77,500 Barrier as Shortsellers Get Devastated

Bitcoin's price surged this week, marking its best performance since 2023. Over $1 billion in shortsellers' positions were closed as investors piled into exchange-traded funds, which took in over $1.6 billion this week alone.

The Treasury Department's announcement to double the size of its long-dated bond buybacks on Wednesday sent yields down and assets like Bitcoin and gold up. The dollar is now trading at a three-month low and on track for its worst week of August.

Lower long-term yields reduce the opportunity cost of holding non-yielding assets, supporting risk-on sentiment. Those betting against Bitcoin also suffered as $1 billion in shorts positions were closed this week, with Thursday seeing the largest liquidation of Bitcoin shorts ever at $1.1 billion.