Bitcoin Soars Above $72,000 on Short Squeeze and Treasury Bond Purchases

Bitcoin surged above $72,000 on Thursday after gaining nearly 15% since Monday, wiping out billions of dollars in bearish bets.

Analysts attribute the rally to Treasury bond purchases and a massive short squeeze, which has largely been exhausted.

The technical picture has improved with Bitcoin reclaiming its 200-day simple moving average around $69,000 and sitting above its 20- and 50-day moving averages.

However, experts warn that the rally may not be sustainable without fresh buying and caution against a potential reversal in sentiment or broader market risks.