Highlights
- Bitcoin reached an intraday peak of $72,408 on Thursday, later settling at $71,423, marking a 3.07% increase for the day.
- This price point is the highest since the coin experienced a flash crash that dropped it below $68,000 on June 2.
- Short sellers faced significant losses, with over $3 billion in short positions liquidated in the last 24 hours, impacting more than 190,000 traders.
On Thursday, Bitcoin surged past the $72,000 threshold, peaking at $72,408 before retracting slightly to around $71,423, reflecting a daily gain of 3.07%.
This marks the highest trading level for Bitcoin since June 2, when a sudden market drop sent the cryptocurrency from approximately $71,765 to $67,895 in just one session, initiating a decline that saw Bitcoin hit a 21-month low of roughly $57,832 by the end of June.
Myriad: What’s next for Bitcoin's price? Make your prediction here.This ongoing rally, now in its second day, has seen Bitcoin increase nearly 15% since Monday.
The price surge triggered a massive liquidation of short positions—traders betting on Bitcoin’s decline. When prices rise, exchanges automatically close these positions if a trader's collateral is insufficient to cover losses, resulting in forced buybacks.
This dynamic was evident during the prior day’s market movement, where Bitcoin first surpassed the $70,000 mark. According to Coinglass, 174,416 traders faced liquidation in the last 24 hours, totaling $2.85 billion in liquidations, contributing to the previous day's figures.
Each forced buyback escalates the price further, activating more short positions in a self-reinforcing cycle known as a short squeeze.
Macroeconomic factors also play a role in Bitcoin’s recent volatility. The U.S. Treasury announced plans on Wednesday to at least double its buybacks of long-term bonds, raising the cap from $2 billion to $4 billion per operation for 10-to-30-year securities starting September 9, aimed at enhancing demand and reducing borrowing costs.
This Treasury announcement has led to a decrease in bond yields and a weakening of the dollar, a scenario analysts are referring to as "QE Lite," similar to previous Federal Reserve bond-buying programs that eased financial conditions. This news coincided with a White House meeting involving President Trump and executives from crypto firms like Coinbase, Ripple, and Robinhood.
Market sentiment shifted rapidly alongside the price changes. On Myriad, the prediction market affiliated with Decrypt's parent company, traders were 70% inclined towards a price drop to $55,000 just a day before; by Wednesday afternoon, those odds had shifted to almost a balanced 50-50.
Testing Bitcoin's Death Cross
Thursday’s price spike represents a crucial test for Bitcoin's death cross, which occurs when the 50-day exponential moving average falls below the 200-day moving average—an indicator traders use to signal a reversal in short-term momentum against a longer-term trend.
This bearish pattern emerged on November 16, 2025, about six weeks after Bitcoin reached its all-time high near $126,198, and has persisted since then. Bears have had ample time to adapt to this trend.
As of Thursday afternoon, Bitcoin had yet to close above both moving averages decisively, leaving the chart in a precarious position.
Blockchain analytics firm Glassnode highlighted the magnitude of the recent price movement, describing it as "the largest upside shock since October 2023" in relation to Bitcoin's recent volatility. Meanwhile, cryptocurrency-related stocks also benefited from this upward momentum, with Strategy gaining nearly 12% and Coinbase rising 9% this week. Spot Bitcoin ETFs recorded $517 million in net inflows on Wednesday, marking their most substantial single-day influx since May.
The next Treasury buyback operation under this expanded program is set to commence on September 9, targeting the same 10-to-30-year securities for further purchases.