#Strategy涨近12% Is the crypto market’s bull market here? Bitcoin suddenly surges, briefly breaking above $70k

Bitcoin staged a sudden strong rebound on Wednesday, reaching a high of $70,059.9, its highest level since early June, while also recording its biggest single-day gain since March. As the market quickly reversed, large numbers of short positions were forced to close, triggering the largest Bitcoin short liquidation wave since records began in 2021.
According to Coinglass data, more than $1 billion in Bitcoin short positions were forcibly liquidated within roughly one hour. Bitcoin had previously experienced months of sustained declines, at one point falling to just above $60k, as bearish sentiment continued to build. As prices suddenly turned higher, the large amount of passive buying generated by short covering further drove up Bitcoin’s price, creating a typical short squeeze.
Multiple positive factors emerged behind the rebound. U.S. President Trump met with executives from several cryptocurrency industry companies at the White House that day, including representatives from Coinb, Payward, Blockchain, Group Holdings and other companies, further reinforcing market expectations that the Trump administration will promote a crypto-friendly regulatory environment for digital assets.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) proposed a new plan this week that would allow certain digital asset offerings to be exempt from filing securities registration statements. The SEC said the exemptions would primarily target companies in the startup and fundraising stages, aiming to lower their financing barriers. Previously, efforts by the U.S. Congress to advance legislation on cryptocurrency market structure had stalled.
IG Chief Technical Analyst Axel Rudolph said Bitcoin was mainly driven by short covering, showing that buyer confidence is recovering. However, the next major test for this rally will be whether it can maintain its current momentum and further challenge the area near $75,000.
Joshua Lim, co-head of markets at FalconX, said that the cryptocurrency trading market had been almost entirely dominated by selling and negative news over the past several weeks, but Bitcoin had shown considerable resilience around the low-$60k area, ultimately driving a shift in market sentiment and trading dynamics.
Technical conditions have also improved significantly. Wednesday’s gain pushed Bitcoin back above its 100-day and 200-day moving averages, both of which are key technical indicators closely watched by traders. The rebound also spread across the broader cryptocurrency market, with Ethereum briefly rising 12% intraday and likewise recording its biggest single-day gain since March.
The previous distribution of positions in the options market also reflected investors’ bets on key price ranges. According to data from cryptocurrency exchange Deribit, Bitcoin options investors had previously heavily purchased downside protection around $60,000 while establishing upside positions around $70k, with open interest in related put and call options highly concentrated near these two strike prices.
In addition to regulatory tailwinds, the U.S. Treasury’s unexpected expansion of long-term Treasury buybacks on Wednesday also became an important catalyst for Bitcoin’s rise. U.S. Treasury Secretary Bessent sought to ease the pressure from persistently rising long-term financing costs, and the Treasury announced that it would at least double the liquidity-support buyback volume for Treasuries with maturities of 10 to 30 years. After the announcement, long-term U.S. Treasury yields and the dollar both fell, creating a more favorable market environment for risk assets such as Bitcoin.
Adam McCarthy, head of research at cryptocurrency liquidity and market data firm LO:TECH, said that shorting Bitcoin had become a relatively crowded trade in the market over the past several weeks, while the policy signals released by the U.S. Treasury that day clearly boosted investor confidence and triggered a rapid flow of funds back into risk assets such as Bitcoin.
Bitcoin’s surge also drove a broad rally in cryptocurrency-related stocks. Coinba, one of the largest digital asset trading platforms in the United States, rose more than 9%; major Bitcoin holder $Strategy (MSTR) gained more than 12%; and stablecoin issuer $Circle (CRCL) surged nearly 10%.
However, U.S. cryptocurrency regulatory legislation remains uncertain. The CLARITY Act, which aims to establish a regulatory framework for the digital asset market, is currently stalled in the U.S. Senate, with Democrats and Republicans sharply divided over provisions including ethics rules, some of which relate to Trump’s own involvement in the digital asset industry.
For Bitcoin, the key question now is whether this rapid rise driven by short covering can develop into genuine sustained buying. This short-squeeze rally shows that bearish positions had become highly concentrated in the market, and once prices reversed, large-scale forced liquidations could create a self-reinforcing upward move. As Bitcoin approaches the $70,000 threshold again, market focus will turn to whether buying can continue and further challenge the key area near $75,000. $BTC ‌