Bitcoin's Short-Squeeze Surge Shows Signs of Waning Momentum

Bitcoin's price surge has left many investors wondering if this is the start of a new bull market. In less than 48 hours, Bitcoin jumped from around $64,500 to over $77,000, a gain of roughly 20%. This sudden move was sparked by a combination of macroeconomic catalysts and a short squeeze.

The U.S. Treasury announced plans to double the maximum size of certain long-dated bond buyback operations, which improved liquidity in the market. President Trump also urged Congress to pass the Digital Asset Market Clarity Act during a White House meeting with cryptocurrency executives.

These catalysts pushed Bitcoin through resistance that had held for weeks. However, the rally's momentum is now driven by short liquidations rather than new buyers. As the short squeeze runs out of fuel, investors are looking to spot demand from ETF inflows to keep the rally alive.