Bitcoin Surges Above $72K as Historic Short Squeeze Wipes Out $3B in Bearish Positions
The cryptocurrency market is experiencing a significant rebound, with Bitcoin (BTC) surging above $72,000 for the first time since June 1. This rally has spread across the broader market, with Hyperliquid (HYPE) and Pepe (PEPE) among the strongest-performing altcoins.
The sharp move higher has triggered an unprecedented wave of short liquidations, as traders betting against the market were forced to close positions. According to CoinGlass data, more than $3 billion in short positions were liquidated over 24 hours, with Bitcoin accounting for approximately $1.76 billion in liquidations.
The rally began after U.S. Treasury Secretary Scott Bessent indicated that the U.S. Treasury would increase its long-term debt buybacks to support liquidity in the Treasury market. Traders interpreted this move as potentially supportive for liquidity and risk assets, helping trigger a broader crypto recovery.
HYPE has been one of the biggest beneficiaries of the latest rally, climbing approximately 23% to $72 after Trump said the CFTC was working to bring Hyperliquid into the United States in a compliant manner. This announcement helped HYPE break above the resistance of a bull-flag formation and could potentially test the $78 area around the upper Bollinger Band.