Bitcoin's largest short squeeze since 2021 liquidated $2.77 billion in shorts as US Treasury policy shift triggered a rally to nearly $79,600.

After a 50 per cent collapse, prices for the cryptocurrency suddenly rallied more than 20 per cent last week, forcing hedge funds to buy by the token.

A wallet tracked as bowen1476 has lost on 14 straight bitcoin shorts totaling $4.56 million as a Treasury-fueled BTC rally keeps squeezing bears.