Bitcoin is closing in on $80,000 and already destroyed a record $4 billion in short bets

Bitcoin surged towards $80,000 on Friday, extending a three-day rally that has liquidated greater than $4 billion in bearish bets and pushed the cryptocurrency to a three-month high.

Data from CryptoSlate reveals Bitcoin climbed as high as $78,449, gaining greater than 10% over the previous 24 hours earlier than easing to $77,873 as of press time.

The rally began Wednesday after the US Treasury stated it might not less than double liquidity-support buybacks for 10- to 30-year authorities debt, sending long-term yields decrease and enhancing danger urge for food.

Momentum accelerated as President Donald Trump hosted crypto executives at the White House and urged Congress to advance the CLARITY Act, whereas the SEC and CFTC moved forward with extra industry-friendly proposals.

Institutional demand additionally strengthened. SoSoValue information reveals spot Bitcoin exchange-traded funds have attracted greater than $1 billion since Wednesday, including recent shopping for as Bitcoin broke by resistance ranges that had capped earlier restoration makes an attempt.

Derivatives positioning then magnified the transfer. CoinGlass information reveals greater than $4 billion in Bitcoin shorts have been liquidated since Wednesday because the asset jumped from round $65,000 by $70,000 and then above $75,000.

Bitcoin’s bull sign confirms what May’s $82,000 rally couldn’t

A market indicator that remained bearish throughout Bitcoin’s previous recovery is now confirming the worth surge.

CryptoQuant’s Bitcoin Bull Score Index has climbed again to 60, marking its first return to bullish territory since October 2025.

The shift is notable as a result of the index did not cross that threshold even when Bitcoin rallied above $82,000 in May, suggesting the present advance is being accompanied by a broader enchancment in underlying market circumstances.

Six of the index’s 10 elements have turned constructive, together with demand development, stablecoin liquidity, and dealer realized worth. CryptoQuant makes use of the indications collectively to evaluate whether or not Bitcoin is buying and selling in a predominantly bullish or bearish regime.

During sustained bull phases, the index has traditionally spent a lot of its time above 60 earlier than finally falling again into bearish territory. Holding above that degree and shifting greater would strengthen the case that Bitcoin is undergoing a broader regime shift somewhat than merely one other sharp rebound.

Still, Joao Wedson, chief govt of Alphractal, stays skeptical that the present rally marks a sturdy change in market pattern.

Wedson said sharp short squeezes are widespread throughout bear markets and could make transient rebounds appear like the beginning of a new uptrend earlier than demand and quantity are robust sufficient to help the transfer.

He said:

“For now, I see this transfer as nothing greater than a aid rally. In my view, nothing has modified but.”

Bitcoin’s rally now faces a totally different check

Nevertheless, Bitcoin’s continued climb towards $80,000 has saved the breakout intact, however the rally is getting into a extra demanding part because the short squeeze clears out a lot of the bearish positioning that helped speed up the transfer.

Nicolai Søndergaard, senior analysis analyst at Nansen, advised CryptoSlate that short masking amplified the rally somewhat than created it.

According to him, ETF inflows and broader spot demand additionally supported the advance, serving to Bitcoin reclaim its 20-week and 200-day shifting averages and transfer above the estimated short-term holder value foundation close to $68,700.

More than $4 billion in Bitcoin shorts have been liquidated since Wednesday, forcing bearish merchants to purchase again positions as costs rose. That added momentum to demand already coming from ETFs and different spot patrons.

The ensuing shift in positioning is now creating a totally different danger. Søndergaard stated momentum is stretched, funding has turned constructive, and leveraged merchants are more and more crowded lengthy.

While these circumstances don’t sign that the breakout is ending, they make continued spot demand extra necessary as pressured short masking turns into a smaller a part of the transfer.

Meanwhile, Washington has additionally turn out to be an necessary sign for the market.

Lacie Zhang, analysis analyst at Bitget Wallet, advised CryptoSlate that Bitcoin is starting to commerce with a US political premium because the Trump administration pushes to advance crypto legislation forward of November’s midterm elections.

Zhang stated the timing may matter as a lot because the substance. The administration has an incentive to indicate progress on borrowing prices, monetary markets and rising industries earlier than the midterms, whereas the crypto sector has motive to safe the CLARITY Act legislation earlier than a change in the congressional steadiness makes additional motion more durable.

That political premium may additionally turn out to be a vulnerability. Failure to advance the CLARITY Act, renewed disputes over the administration’s crypto insurance policies or a slowdown in regulatory momentum after the elections may rapidly weaken a part of the help now being priced into Bitcoin.

For now, nonetheless, the rally has continued whilst considered one of its authentic macro tailwinds has weakened.

That leaves spot and ETF demand because the clearest check of what comes subsequent. As the pool of susceptible short positions shrinks, additional positive aspects will more and more rely on buyers persevering with to purchase Bitcoin at greater costs somewhat than on pressured masking alone.

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