Bitcoin Surges 23% on Treasury Yield Drop and Short Squeeze

Bitcoin is on track for a weekly gain of around 23% as investor optimism surges, with prices reaching $77,000. This follows a series of positive developments for the largest cryptocurrency, including a sharp pullback in Treasury yields and a massive short squeeze that saw roughly $2.7 billion in crypto short positions liquidated.

The rally began on Wednesday when Treasury yields dropped sharply after the Treasury's intervention in the bond market eased pressure on risk assets. This triggered a broader move into crypto, which was later amplified by the short squeeze. Crypto-linked stocks also rose, with Coinbase and Circle advancing more than 9% each.

Lucy Gazmararian, founder of Token Bay Capital, believes that bitcoin is coming to the end of its bear market and expects one final flush before it drops another 20%. She calls on investors to 'hold the longer-term thesis' and notes that crypto trades are a play against monetary debasement.