Bitcoin Rallies 9% to $76,800, a Three-Month High, Leaving Traders Asking Whether the Bottom Is In
Key Takeaways
- •Bitcoin reached roughly $76,800 after gaining nearly 9% in 24 hours, its highest price since May.
- •The rally came after the US Treasury expanded buybacks of longer-dated government bonds, adding liquidity to the financial system.
- •More than $2.74 billion in short positions were liquidated on Wednesday, followed by another $902.61 million in BTC shorts over the next 24 hours.
- •CryptoQuant CEO Ki Young Ju said spot and futures demand turned positive for the first time since the October 2025 all-time high, but he called it an early signal that needs confirmation.
- •Some traders argue Bitcoin has already bottomed near $60,000, while others say the move may not last without stronger spot buying.
Bitcoin climbed nearly 9% over 24 hours, reaching approximately $76,800 on Friday — its highest level since May — and raising a bigger question for traders: has the market finally found its bottom?
The Catalysts Behind the Move
The rally followed the US Treasury's decision to expand liquidity-support buybacks of longer-dated government bonds. The Treasury launched regular buyback operations in 2024 — its first sustained such program in over two decades — repurchasing older, off-the-run securities to support market functioning, so an expansion of the program channels additional liquidity into the financial system. 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.
The combination of catalysts triggered a wave of forced short covering. More than $2.74 billion in short positions were liquidated on Wednesday alone. 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. Short liquidations occur when rising prices force leveraged traders betting on declines to buy back their positions, a mechanical cascade that can amplify a move beyond what fresh buying alone would deliver.
Analysts Remain Divided
The price surge has not convinced all market participants that Bitcoin has entered a new bull cycle — and even at $76,800, the price remains below the October 2025 all-time high.
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 such as @astronomer_zero (X post), 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.
Questions Over the Rally's Durability
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. The near-term checkpoints are already defined: whether CryptoQuant's demand gauge stays positive through the month-long confirmation window Ki Young Ju outlined, and whether genuine spot buying steps in as liquidation-driven volume fades.
Broader Implications
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.
Source: DailyCoin
