Bitcoin Soars Past $81,000 as Treasury Announcement Triggers Short Squeeze

Bitcoin's price has surged past $81,000 to a 15-week high, fueled by a combination of factors including the US Treasury Department's bond buyback announcement and strong spot ETF inflows. The rapid ascent triggered over $260 million in short liquidations within four hours, with total liquidations approaching $650 million. This marks a dramatic reversal for Bitcoin, which had been trading below $65,000 just last week.

The rally was sparked by the US Treasury Department's plan to increase long-term bond repurchases, which shifted risk appetite across financial markets and created a perfect storm for bullish momentum. Spot Bitcoin ETFs posted net inflows of approximately $1.92 billion last week, underscoring the breadth of institutional participation.

As prices climbed, leveraged bearish positions were forcibly liquidated, generating additional buy orders that pushed prices higher still. Market analysts are now debating whether Bitcoin can extend its run toward the $88,000 level, but the speed of the recent advance has raised questions about sustainability.