Bitcoin staged a powerful rally, jumping nearly 8% in a single day to trade around $77,000, a move that obliterated roughly $1.21 billion in bearish positions and caught short sellers off guard amid a stream of favorable developments out of Washington.
A Sharp Move Higher
The largest cryptocurrency climbed 7.9% over 24 hours, marking one of its strongest single-day advances in recent weeks. The surge pushed Bitcoin back toward the $77,000 mark, reversing a stretch of downward pressure that had weighed on the broader digital asset market.
The rapid ascent triggered a classic short squeeze, in which traders who had bet against Bitcoin were forced to buy back into the market as prices rose, accelerating the upward momentum. According to liquidation data, roughly $1.21 billion in bearish wagers were wiped out during the move.
When the shorts get squeezed, the rally feeds on itself — and this one had plenty of fuel.
Washington Provides a Tailwind
The rally coincided with a wave of positive signals emerging from Washington, where policymakers and regulators have increasingly shaped the tone of the crypto market. Favorable news on the policy front has become a key driver of investor sentiment, helping to spark renewed appetite for risk assets.
Short squeezes tend to amplify price swings because leveraged traders betting on declines must scramble to cover their positions. That cascade of forced buying can turn a modest gain into a dramatic surge in a matter of hours.
Key factors behind the move included:
- A 7.9% daily gain lifting Bitcoin to roughly $77,000
- About $1.21 billion in short positions liquidated
- A batch of favorable policy signals from Washington
Whether the momentum holds will depend on continued policy clarity and broader market conditions, but for now the sharp reversal has handed bulls a decisive victory over the bears.