Bitcoin climbed back above $72,000 on Thursday, reaching an intraday high of $72,408 before easing to trade near $71,423, marking a 3.07% gain on the day. This price level represents the highest Bitcoin has traded since a flash crash on June 2 knocked the asset below $68,000. The rally, entering its second day, has added close to 15% since Monday.
The upward momentum triggered the worst two days on record for Bitcoin's short sellers. Over $3 billion in short positions were liquidated across the cryptocurrency market within a 24-hour period, impacting more than 190,000 traders. According to Coinglass data covering a broader window, total liquidations reached $2.85 billion across 174,416 traders. These forced buybacks fueled a short squeeze, creating a feedback loop that pushed prices higher.
Macroeconomic factors also accompanied the market movement. On Wednesday, the U.S. Treasury announced plans to at least double its long-bond buybacks, raising the cap from $2 billion to $4 billion per operation on 10-to-30-year securities starting September 9. The announcement reduced bond yields and weakened the dollar, creating looser financial conditions. The policy update preceded a White House meeting featuring President Trump and executives from crypto firms including Coinbase, Ripple, and Robinhood.
Thursday's price spike serves as a test of Bitcoin's death cross pattern, which formed when the 50-day exponential moving average fell below the 200-day exponential moving average on November 16, 2025. As of Thursday afternoon, Bitcoin had not yet closed decisively above both lines.
Blockchain analytics firm Glassnode characterized the upward movement as the largest upside shock since October 2023 relative to recent volatility. Spot Bitcoin ETFs recorded $517 million in net inflows on Wednesday, marking their largest single-day haul since May. Crypto-linked equities also rose, with Strategy shares gaining nearly 12% and Coinbase climbing 9% over the week.
