Bitcoin's Surge Sends Crypto Market Back to $3T Amid Rising Leverage

Bitcoin's price surge has propelled the crypto market back to $3 trillion in value for the first time since January, according to CoinGecko. This gain of over $740 billion is attributed to the recent US Treasury announcement that it would increase buybacks of long-term bonds.

Leverage is on the rise as open interest in perpetual futures has climbed to nearly $160 billion, a level not seen since late October last year. Coinglass data shows this growth in leverage despite prices increasing.

As Bitcoin reached an 8-month high above $85,000, over $920 million worth of bearish bets were liquidated. The resulting short squeeze has left traders rushing to buy back assets to close losing trades, further fueling the price surge.