Trump's Crypto Push Sparks Massive Short Squeeze as Bitcoin Surges Above $72,000

Bitcoin's price surge above $72,000 on Thursday caught bearish bets off guard, leading to a massive short squeeze that liquidated over $700 million in positions in just one minute. The sudden move came as the US Treasury doubled its long-duration bond buybacks and President Trump put pressure on lawmakers to pass the Clarity Act, a bill aimed at regulating crypto.

According to CoinGlass, about $1.8 billion in bitcoin shorts were liquidated over 24 hours through Thursday morning, making it the second-biggest short squeeze in Bitcoin's history. This surge in price and subsequent short squeeze is seen as a sign of growing optimism in the crypto market, with spot Bitcoin ETFs experiencing their largest daily inflow since early May.

Despite this optimistic turn, experts caution that Bitcoin still has a long way to go before it can recover from its current crypto winter. The coin's short-term and long-term moving averages remain in a 'death cross' formation, indicating a bearish trend that could persist unless sustained momentum is maintained.