What happened: Bitcoin staged a dramatic comeback, jumping nearly 9% in 24 hours and 19% over the week to reach around $75,400—a three-month high. The rally pulled up major altcoins, with Ethereum surging 26% to $2,374 and XRP soaring 30%. The rally was sparked by the U.S. Treasury expanding bond buybacks, a new crypto framework proposal from the SEC, and reports of White House discussions regarding government Bitcoin purchases. The real catalyst, however, was a massive market squeeze that forced the liquidation of over $3 billion in short positions, accompanied by $1.3 billion in weekly inflows into crypto investment products.
Why it matters: This breakout breaks months of sluggish, range-bound trading and confirms a rebound in institutional demand, highlighted by $1 billion in net inflows into Bitcoin ETFs alone. However, crypto experts caution that because the move was fueled heavily by a short squeeze rather than purely organic buying, sustained gains will depend on real spot demand in the coming weeks. Key levels to watch include support at $69,000 and the next resistance boundaries between $80,000 and $83,000, with Federal Reserve interest rate policy remaining the main threat to liquidity.
