Bitcoin's surge above $72,000 wiped out billions in bearish bets, but analysts say fresh buying will be needed to keep the rally going.

The U.S. Treasury’s bond-buyback announcement helped send Bitcoin up nearly 6% with one analyst saying a broader recovery may be afoot.

Six weeks of compression ended in the largest short liquidation event since at least 2021, with $3 billion of bearish bets forced to buy back into thin supply.