Bitcoin extended its rally Thursday, climbing above $72,000 for the first time since May, a day after crypto markets recorded their largest-ever short-liquidation event.
Bitcoin shorts were liquidated to the tune of $2.75 billion on Wednesday, CoinGlass data shows, as markets were juiced by expanded Treasury buybacks, the SEC's crypto proposal, and a White House meeting with President Donald Trump that featured some of the most prominent executives in crypto.
"Squeezes start rallies, but they don't sustain them, and this one has more behind it than forced buying," said Gideon Hyams, chairman and co-founder of STS Digital.
"Falling long-end yields, returning ETF flows and a clearer regulatory path in Washington are exactly the conditions that turn a bounce into a trend.
The test is whether BTC can hold above the range that trapped it since June, and so far it's passing." Short covering accelerated the breakout, but didn't create it, according to Nicolai Søndergaard, senior research analyst at Nansen.
