Bitcoin Tops $70,000 Amid a Short Squeeze, but 3 Metrics Hold the Real Signal

Bitcoin (BTC) briefly traded above $70,000 yesterday for the first time since June 2. Short liquidations reached $2.74 billion over the past 24 hours. The rally started with policy signals from Washington.

Forced short covering then amplified the move, turning a macro catalyst into a cascade across derivatives markets. Now, a key question arises: Will the rally last? What Drove the Bitcoin Price Surge? Two key developments sit behind the price move.

BeInCrypto reported that the Treasury will double long-end debt buybacks to at least $4 billion each. Furthermore, President Donald Trump suggested that a sizable government purchase of Bitcoin has been discussed.  Those catalysts pushed the price into crowded short positioning.

Liquidations then fed the move, because closing a short requires buying, which lifts the price and triggers the next tier. CoinGlass data shows 172,202 traders liquidated over 24 hours. Shorts absorbed $2.74 billion of that total against $256.66 million in longs.