Bears just lost $3.1 billion in four days, and Bitcoin is still climbing.
BTC blasted through $72,000 on Thursday, printing its highest price since June and erasing months of sideways frustration in a single explosive week. From Monday to Thursday, Bitcoin gained roughly 15%, settling at $72,207 as of press time according to CryptoSlate data.
This wasn't a random pump. Two forces collided at exactly the wrong moment for short sellers.
The Setup Nobody Saw Coming
Falling Treasury yields pulled institutional money away from bonds and back toward risk assets. At the same time, Washington's increasingly crypto-friendly posture under Trump created a macro backdrop that made betting against Bitcoin look reckless. Glassnode data confirmed the damage: over $3.1 billion in short positions were liquidated as BTC pushed back above $70,000 for the first time since June.
Short squeezes of this size don't just clear out weak hands. They reset the market structure entirely. Traders who were positioned for continued downside got forced out, and that forced buying added fuel to an already hot move.
Why This Breakout Feels Different
The $70,000 level had been a ceiling for months. Each attempt to reclaim it faded. This time, BTC didn't just tap it and retreat. It pushed through, consolidated briefly, and extended to $72,207. That kind of price behavior, breaking resistance and holding above it, is exactly what technical traders watch for confirmation.
The macro tailwind matters too. When Treasury yields fall, the opportunity cost of holding Bitcoin drops. Institutions that had been sitting on the sidelines watching yields pay them comfortable returns now face a different calculation. That shift doesn't happen overnight, but Thursday's move suggests the rotation may already be underway.
The Trump Factor
Washington's crypto posture has shifted visibly. A more favorable regulatory tone from the Trump camp has reduced one of the biggest overhangs on institutional Bitcoin adoption. Firms that were hesitant to allocate aggressively while regulatory risk remained elevated now have slightly more cover. That's not a small thing for a market that has been starved of fresh institutional demand.
What to Watch Now
The $72,000 level is now the line in the sand. If Bitcoin holds above it through the weekend, the next meaningful resistance sits closer to the all-time high range. A rejection and close back below $70,000 would signal the squeeze is over and distribution has begun.
Crypto holders should watch Treasury yield movements closely. If yields continue falling, this rally has more room. If they reverse, expect Bitcoin to face headwinds regardless of the political backdrop.
The shorts are gone. The question now is whether the buyers showing up here have conviction or just FOMO.