Bitcoin Skyrockets by $7K Amid Record ETF Inflows and Short Squeeze

The cryptocurrency market experienced an unexpected surge on Monday, with Bitcoin's price skyrocketing by $7K in just one day to reach an eight-month high of over $87,000.

This impressive rally comes despite a series of negative macro and industry developments in the past week, including the US Senate's failure to advance the CLARITY Act and the Federal Reserve's interest rate hike for the first time in over three years.

The record inflows into spot BTC ETFs were a major contributor to the price gain, with $998.95 million entering the funds on Monday alone, making it the single-best performance in nearly a year.

CryptoQuant's analysis revealed that the technical side of the story also played a significant role, with spot demand working in tandem with ETF inflows to result in over $340 million in shorts getting wrecked in a classic short squeeze.