Bitcoin rebounded toward the $80,000 threshold, reaching an August high of $79,989 after briefly dipping below $77,000 earlier in the cycle. The price action marked a recovery from a weekend market slump that had caused high-cap altcoins to pull back from multi-month highs.
During the 24-hour period, bitcoin recorded daily gains of approximately 3%, bringing its market capitalization to $1.59 trillion and reducing its year-to-date losses below 10% for the first time since mid-May. Overall cryptocurrency market liquidations surpassed $396 million, with short positions taking the largest hit. Coinglass data indicated that wiped-out short bets across the market reached $222 million, compared to $98 million in specific bitcoin short liquidations and $45.3 million in long bets.
Macroeconomic Drivers and Analyst Outlook
Market analysts pointed to U.S. Treasury bond buyback plans and statements from Treasury Secretary Scott Bessent regarding potential larger buybacks as drivers behind capital moving toward alternative assets such as gold and cryptocurrency. Economist Peter Schiff criticized the strategy on social media, warning that shortening the average maturity of the national debt could lead to increased exposure to short-term rates, runaway inflation, and massive quantitative easing.
Bitfinex analysts noted that sustained upward momentum requires real spot demand rather than relying solely on short squeezes. According to their latest report, a confirmed recovery would be supported by a weekly close above the average purchase price of buyers from the past three to six months, with an eye toward the $86,500 level where longer-term buyers await break-even points. Conversely, a fall back below recent buyer averages could return the market to its summer trading range.
