Bitcoin Surges Past $82K as ETF Demand and Short Squeeze Combine

Bitcoin's price has broken through $82,000 and reached as high as $87,000, its highest level since late January. According to Tim Sun, Senior Researcher at HashKey Group, this breakout was triggered by forced buying among traders who had bet on a decline, known as short sellers.

The resulting squeeze increased Bitcoin's 'price elasticity,' allowing each new round of buying to produce a larger move, said Sun. ETF demand then entered after the breakout, providing confirmation that an upward trend had formed.

U.S. spot Bitcoin ETFs recorded $433 million in net inflows on Friday, reversing much of the pressure created by withdrawals earlier in the week. The funds ended the five-session period with a modest net inflow of about $6.1 million.