Bitcoin rose $15K in 4 days š
And thereās no new wave of buyers behind this surge.
The story started on Wednesday. The U.S. Treasury announced it would raise the cap for long-term bond buyback operations from $2 billion to at least $4 billion. The same day, there was a crypto meeting at the White House šļø
The market read this as āliquidity easing on the system side.ā
After that, itās purely mechanical š
When the price broke upward out of the range it had been stuck in between 62K and 66K for 6 weeks, short positions that had built up over the year got closed in a cascading chain. In 24 hours, roughly $3 billion worth of shorts were liquidated. This is the biggest such figure since 2021. In a single hour, more than $1 billion in BTC shorts were wiped out.
So the buying pushing the price up wasnāt a discretionary buy. It was forced buying by those who had to close š§Ø
Hereās the part that caught the detectiveās attention š
On the derivatives side, open positions didnāt unwind at the same pace. New longs didnāt replace the shorts that were closing.
The Fear & Greed Index jumped from 41 to 59āmoving from fear to greed in a single session š
Since the start of the rally, over 44,000 BTC have been sent to exchanges. Someone used this rise as an exit door.
Then on Saturday, $550 million in longs were liquidated in the opposite direction. Leverage only flipped direction.
Right now, BTC is around $77K, with a weekly gain of 22% š ETH around the $2,400 range.
For perspective: BTC is still about 39% below its October 2025 peak of $126K.
A squeeze can kick off a rally, but it canāt sustain it by itself. What sustains it is spot demand and ETF inflows. Thatās the big question for next week.
Do you think this is a dip reversal, or a breather brought on by cleaned-up leverage? š
This content is for informational purposes only and does not constitute investment advice or investment consulting.
And thereās no new wave of buyers behind this surge.
The story started on Wednesday. The U.S. Treasury announced it would raise the cap for long-term bond buyback operations from $2 billion to at least $4 billion. The same day, there was a crypto meeting at the White House šļø
The market read this as āliquidity easing on the system side.ā
After that, itās purely mechanical š
When the price broke upward out of the range it had been stuck in between 62K and 66K for 6 weeks, short positions that had built up over the year got closed in a cascading chain. In 24 hours, roughly $3 billion worth of shorts were liquidated. This is the biggest such figure since 2021. In a single hour, more than $1 billion in BTC shorts were wiped out.
So the buying pushing the price up wasnāt a discretionary buy. It was forced buying by those who had to close š§Ø
Hereās the part that caught the detectiveās attention š
On the derivatives side, open positions didnāt unwind at the same pace. New longs didnāt replace the shorts that were closing.
The Fear & Greed Index jumped from 41 to 59āmoving from fear to greed in a single session š
Since the start of the rally, over 44,000 BTC have been sent to exchanges. Someone used this rise as an exit door.
Then on Saturday, $550 million in longs were liquidated in the opposite direction. Leverage only flipped direction.
Right now, BTC is around $77K, with a weekly gain of 22% š ETH around the $2,400 range.
For perspective: BTC is still about 39% below its October 2025 peak of $126K.
A squeeze can kick off a rally, but it canāt sustain it by itself. What sustains it is spot demand and ETF inflows. Thatās the big question for next week.
Do you think this is a dip reversal, or a breather brought on by cleaned-up leverage? š
This content is for informational purposes only and does not constitute investment advice or investment consulting.
