Bloomberg: Bitcoin Nears $70,000 Triggering Epic Short Squeeze, Crypto Market Sees Largest Rebound Since March

BlockBeats News, August 20th. The Bitcoin market saw a sudden rebound on Wednesday, with the price surging by nearly 8% at one point, briefly exceeding $70,000, hitting a new high since early June, and triggering the largest short squeeze of 2021.

In just about 1 hour, over $1 billion worth of Bitcoin short positions were liquidated, as months-long bearish trades were forcefully unwound, leading to a rapid BTC rebound. Analysts pointed out that this surge reflected an overcrowded bearish market, and as the price turned upwards, short-sellers were forced to buy back to cover, further amplifying the upward momentum.

This rebound was also driven by multiple factors. U.S. President Trump met with executives from Coinbase, Kraken, Blockchain.com, and other crypto companies at the White House on Wednesday, leading the market to anticipate that the U.S. government will continue to promote a more crypto-friendly regulatory framework.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) proposed new rules on cryptocurrency asset issuance this week, aiming to exempt some digital asset issuers from registration requirements, providing a larger space for industry fundraising.

On a macro level, the U.S. Treasury announced an expansion of its long-term Treasury bond repurchase program, doubling the scale of repurchases for 10 to 30-year bonds, to enhance market liquidity, alleviate long-term Treasury yield pressure, and further boost risk asset sentiment.

The bullish trend spread throughout the entire crypto market, with Ethereum surging by 19% at one point, marking the largest single-day gain since March. Crypto-related stocks also saw significant increases, with Coinbase rising by about 10%, Bitcoin reserve company Strategy rising by approximately 13%, and stablecoin issuer Circle rising by nearly 10%.

Analysts stated that the key next step for Bitcoin is whether it can translate this short squeeze into actual buying pressure and break through the resistance area above $70,000. This market movement demonstrated that after months of decline, the crypto market still possesses the ability for swift reversals and self-strengthening rallies.