Bitcoins $73K push may hinge on ETF demand: Analysts
Bitcoin has climbed toward $73,000 after a record short squeeze and falling U.S. Treasury yields powered an 11% rally, but analysts have warned that continued ETF and spot demand will decide whether the breakout holds. Bitcoins short squeeze has accelerated the breakout Nansen Senior Research Analyst Nicolai Søndergaard told crypto.news that forced short covering accelerated Bitcoins rise, although institutional demand and improved liquidity conditions had already given the market an upward bias. “Bitcoins move above $70,000 reflects a combination of forced short covering, renewed institutional demand and a more supportive liquidity backdrop,” Søndergaard said. Bitcoin traded near $72,600 after reaching about $72,800 on Aug. 20, extending a rally that began when the price cleared resistance around $65,000 and $67,000. The asset had spent roughly six weeks inside a narrow range before the breakout caught bearish traders positioned for another decline. CoinGlass data showed that more than $1 billion in Bitcoin shorts were liquidated within about one hour. Across the crypto market, short liquidations reached approximately $2.7 billion over 24 hours, the largest total in records dating to 2021. Shorts accounted for about 92% of almost $3 billion in total liquidations across more than 172,000 traders. As reported earlier on Thursday, Bitcoin gained 11.4% in 24 hours