Bitcoin Surges to $79,500 as ETF Inflows Rebound and Short Positions Liquidate
Bitcoin surged to a high of $79,500 this week, up 9.4% on Friday and marking its best weekly performance since March. The rally was driven by renewed inflows into U.S. spot Bitcoin ETFs, forced liquidation of short positions, and favorable policy signals from the U.S. government. According to LO:TECH's chief researcher Adam Morgan McCarthy, short squeezes remain a key driver of Bitcoin's recent rally.
The market saw $4.5 billion in Bitcoin short positions liquidated over three days, with approximately $2.5 billion of that coming from leveraged short positions on the Bitcoin market. As prices surged, short sellers were forced to buy back their Bitcoin positions to cover their shorts, further driving up prices and triggering additional short liquidations.
ETF inflows have rebounded significantly, with net inflows exceeding $1 billion this week. Major players are also re-accumulating positions, with large Bitcoin holders increasing their holdings by roughly $2.75 billion over the past 60 days.