Bitcoin Surges Past $79,000 Amid Short Squeeze Frenzy

Bitcoin's price surged past $79,000, marking its highest level since mid-May. The asset tested $79,500 on Binance and gained nearly 8% in a single day. Analysts suggest that a short squeeze may have driven the rally, which was accompanied by record short liquidations.

The market capitalization of digital assets rose to $2.62 trillion, with Bitcoin's dominance at 59.2%. Ethereum-based exchange-traded funds attracted a record $697 million in inflows, while spot bitcoin ETFs saw their largest weekly inflow since October 2025 at $1.92 billion.

The crypto fear and greed index jumped to 71 before pulling back to 66. The upcoming Glamsterdam upgrade on the Ethereum network has raised concerns about possible wallet disruptions, with the Ethereum Foundation warning that wallets, indexers, and fee estimation tools may be affected.