Bitcoin Smells Blood as Historic Rally Sees Prices Soar Above $71,000

A historic Bitcoin rally has seen prices surge above $71,000 and briefly touch $72,000, marking a decisive break from a six-week trading range.

The rally has been accompanied by massive short liquidations, with the largest one to date. According to Samson Mow, CEO of Jan3, the market 'smells blood', indicating that Bitcoin has been vindicated as a safe-haven asset.

The move is likely triggered by the U.S. Treasury's surprise decision to expand its purchases of long-dated government bonds, which has temporarily eased one of the biggest macro headwinds facing Bitcoin.

U.S. spot Bitcoin ETFs attracted approximately $517.2 million in net inflows on Aug. 19, with BlackRock's IBIT accounting for over half the total. However, CryptoQuant CEO Ki Young Ju cautioned that the magnitude remains modest and warned against getting too excited about the trend.