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Bitcoin Catches Its Breath After $3 Billion Short Squeeze

After Treasury buybacks doubled, more than $3 billion in short liquidations followed; spot buyers drove the rally, while BTC is now consolidating around $77,800.

By Mike Hesp
• 2 min read
Bitcoin Catches Its Breath After $3 Billion Short Squeeze

Key Takeaways

  • Bitcoin is trading around $77,800 and has barely moved since midnight UTC after a weekly rally of about 24%.
  • The rise followed doubled buybacks of long-dated U.S. Treasuries and more than $3 billion in short liquidations in 24 hours.
  • Altcoins stayed mostly flat, while the rally came mainly from spot buyers and crypto continues to move closely with liquidity and interest rates.

Bitcoin was trading around $77,800 (€66,500) Monday morning and has barely moved since midnight UTC. That comes after one of the strongest weekly rallies in more than three years, after the price rose about 24% last week from below $63,000 (€53,900).

Treasury Sets the Tone

The move came after the U.S. Treasury Department doubled its buybacks of long-dated government bonds. That step helped the market break out of a six-week trading range and came alongside more than $3 billion (€2.6 billion) in short liquidations over 24 hours. According to market data, the rise was driven mainly by spot buyers and short covering, not by a big increase in leveraged positions.

The effect showed up outside crypto too. Stocks lagged, while crypto and gold rose together last week. Gold was trading near record levels Monday morning, and the 30-year yield briefly hit a 19-year high before the buyback announcement pushed rates back down a bit.

Altcoins Join In, But Only Slightly

Altcoins have been mostly flat to slightly lower since midnight. That fits a market that is just catching its breath, not one that is clearly reversing. Bitcoin dominance remains around 59.2%, and the Altcoin Season Index is at 42 out of 100, a little higher than Friday but still clearly in Bitcoin territory.

Over the past week, altcoin outperformance was also selective. Not every major token joined in, and the derivatives market shows that too: BTC futures open interest fell to a two-month low, while ETH, SOL, and XRP showed a similar pattern during the price rise. That suggests the rally came mainly from the spot market.

What This Means for Europe

For European crypto investors, the main takeaway is that a decision on U.S. government bonds can ripple through Bitcoin and other tokens this quickly. It shows how strongly crypto now moves with broader liquidity and interest rates, not just with news from the industry itself. Higher implied volatility in Bitcoin and Ether can also matter for traders in Europe, because it often goes along with sharper price swings and more expensive options.

The recent jump also fits the view that large players are increasingly treating Bitcoin as a macro hedge, especially now that the U.S. debt and rate markets are under pressure again.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.