- Bitcoin jumped nearly 9% in 24 hours to $76,800, its highest level in three months.
- Treasury buybacks, an SEC crypto proposal and a White House meeting boosted risk appetite.
Bitcoin climbed nearly 9% over 24 hours, reaching approximately $76,800 on Friday and its highest level since May, and raising a bigger question for traders: has the market finally found its bottom?
Why Bitcoin Is Rising
The impressive rally followed the US Treasury’s decision to expand liquidity-support buybacks of longer-term government bonds, starting in September 2026. The announcement came alongside a new SEC proposal on cryptocurrency regulation and a White House meeting between President Donald Trump and executives from the crypto industry.
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The combination of catalysts triggered a wave of short liquidations. More than $2.74 billion in short positions were wiped out on Wednesday alone, followed by another $1.2 billion over the past 24 hours.
The unwinding continued into the following day, with an additional $902.61 million in BTC shorts liquidated over the subsequent 24 hours as the price pushed higher.
Analysts Remain Divided
The Bitcoin price surge has not convinced all market participants that Bitcoin has entered a new bull cycle.
CryptoQuant CEO Ki Young Ju said Bitcoin demand had turned positive across both spot and futures markets for the first time since the October 2025 all-time high.
He described the shift as an early and still relatively weak signal, arguing that a sustained improvement over the next month would provide stronger evidence that the market cycle had turned.
That view contrasts with more bullish traders like @astronomer_zero, who argues that Bitcoin has already established a bottom near $60,000 and is now entering a broader breakout phase.
Their case rests on improving macroeconomic conditions, Treasury market support, regulatory developments, and a potential recovery in institutional demand.
On the Flipside
- The rally was driven heavily by forced short covering rather than fresh spot demand, raising questions about its durability once liquidations subside.
- Persistently high inflation and a hawkish Federal Reserve could push Treasury yields back up, removing a key tailwind for Bitcoin.
Why This Matters
A sustained shift in spot and futures demand, if confirmed over time, would carry significant weight for the broader crypto market’s cycle outlook.
The rally also highlights how closely Bitcoin’s short-term price action is now tied to macro liquidity policy rather than crypto-specific catalysts alone.
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