Bitcoin surged past $81,000 on Friday, hitting an intraday high of $81,238 before retreating to trade above $80,800 at press time. The jump represented more than a 5% gain in 24 hours and lifted the cryptocurrency's market capitalization to $1.62 trillion, up from $1.54 trillion.
The price surge followed reports that the Commodity Futures Trading Commission sent crypto market rules to the White House for review. Bitcoin had fallen below $75,000 earlier in the week after the U.S. Senate failed to pass the CLARITY Act, marking its lowest level since August.
Leverage Reset and Short Liquidations
The rapid price movement hit leveraged traders significantly. According to Coinglass data, approximately $238 million in bitcoin short positions were liquidated over 24 hours, compared with just $6 million in long positions. Across the broader cryptocurrency market, short liquidations surpassed $470 million, while long liquidations totaled just over $57 million.
Spot Demand and Market Conditions
Lacie Zhang, a research analyst at Bitget Wallet, attributed the rally to multiple factors. "Bitcoin is benefiting from a broader risk-on move as oil and long-term Treasury yields ease, while roughly $154 million of daily U.S. spot ETF inflows and short covering helped push it through the psychologically important $80,000 level," Zhang said.
Zhang noted that the move appeared stronger than a typical sentiment bounce because leverage had already been flushed out earlier in the month, leaving the market more responsive to renewed spot demand.
Regulatory Developments
The CFTC's move to send its regulatory framework to the White House signals a strategic pivot by the Trump administration to execute its regulatory roadmap through executive agency action rather than waiting on Congressional legislation. The Securities and Exchange Commission is expected to pursue a parallel administrative route.
