Bitcoin's Price Surge May Be a Trap, Analyst Warns of $45K Drop
A recent surge in Bitcoin's price has some traders warning of a trap, according to analyst Nonzee. The rapid rise from around $60,000 to nearly $80,000 is seen as a forced buying situation rather than real demand.
The short squeeze that pushed the price higher was estimated at over $3.1 billion, with Bitcoin alone responsible for roughly $1.65 billion of that figure, Nonzee claims. This, they argue, was not a change in sentiment but rather a liquidity squeeze triggered by two catalysts: Trump putting the CLARITY Act back in the headlines and the Treasury Department increasing its long-term bond buybacks.
The short squeeze has run its course, and FOMO buying is happening in real time, Nonzee believes. As a result, they predict that Bitcoin's price will drop to between $45,000 and $48,000 after passing through three stages: from $77,000 to $67,000, then $55,000.
Bitcoin was trading around $78,000 at the time of writing, up roughly 2% on the day and about 22% over the past week. However, it remains 39% below its all-time high of around $126,000, set back in October 2025, and is still down 33% on a one-year basis.