Short Squeeze Sends Bitcoin Price Soaring Past $86,000

Bitcoin's price rose to $86,600, marking a 10.8% weekly gain and returning it to levels seen in January.

The rally was driven by a short squeeze, with over $769 million worth of positions being liquidated across the market in a single day.

Roughly 115,490 traders were affected, with most of the losses coming from short positions that were automatically closed as bitcoin's price rose past certain levels.

The increase in oil prices, easing Treasury yields, and improved expectations for US-Iran diplomacy also contributed to the rally, making it easier for risk assets like crypto to perform well.