Bitcoin Tops $70,000 Amid a Short Squeeze, but 3 Metrics Hold the Real Signal
Bitcoin (BTC) briefly traded above $70,000 yesterday for the first time since June 2. Short liquidations reached $2.74 billion over the past 24 hours.
The rally started with policy signals from Washington. Forced short covering then amplified the move, turning a macro catalyst into a cascade across derivatives markets. Now, a key question arises: Will the rally last?
What Drove the Bitcoin Price Surge?
Two key developments sit behind the price move. BeInCrypto reported that the Treasury will double long-end debt buybacks to at least $4 billion each.
Furthermore, President Donald Trump suggested that a sizable government purchase of Bitcoin has been discussed.
Those catalysts pushed the price into crowded short positioning. Liquidations then fed the move, because closing a short requires buying, which lifts the price and triggers the next tier.
CoinGlass data shows 172,202 traders liquidated over 24 hours. Shorts absorbed $2.74 billion of that total against $256.66 million in longs.
Bitcoin alone accounted for $1.42 billion. BTC has since eased to $69,305, up 7.5% over the past 24 hours.
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