Bitcoin Soars to Near $80,000 on Strong ETF Inflows and Short Squeeze

Bitcoin has staged a sharp recovery after one of its strongest weekly rallies in years. The cryptocurrency rose from the low-$60,000 range to nearly $80,000 over the course of a few days, putting it at a crucial point with traders watching whether it can break above the $80,000 resistance level.

The rally has been fueled by several factors, including renewed buying through US spot Bitcoin ETFs, short-position liquidations, and improved market sentiment following the US Treasury's decision to expand its long-term bond buyback programme. The Treasury's move is seen as a boost for risk assets like Bitcoin, but analysts caution that Treasury buybacks are not the same as quantitative easing or direct money printing.

The latest rally has also led to short squeezes, where traders forced to close losing positions have added further buying pressure, contributing to the rapid price increase. However, with the rapid rise comes increased risk of profit-taking, and market watchers will be closely monitoring whether fresh spot demand can replace the buying created by short liquidations.