Bitcoin Breaks 78,000 USD After Its Fastest Rally in Months
Bitcoin surged to $78,250, marking one of its fastest rallies in months. Fueled by a massive short squeeze and $517 million in ETF inflows, the king of crypto is now eyeing the psychological $80,000 barrier. Explore the key factors behind this breakout.
Bitcoin is accelerating sharply as the world’s largest cryptocurrency trades around 78,500 USD on Friday morning. The move puts BTC within striking distance of the psychological 80,000 USD level after one of its fastest rallies in months. From below 65,000 USD on Wednesday, Bitcoin has gained more than 13,000 USD in roughly two days.
The latest jump means Bitcoin is now up well over 20% in the past week. Compared with levels seen only 24 hours earlier, the gain is also running in double digits.
Short Squeeze Turns a Rebound Into a Breakout
The first leg of the rally was supported by a shift in the macro environment. Key factors included:
- The U.S. Treasury announcing plans to at least double the size of liquidity-support buybacks for longer-dated government bonds.
- Long-term yields moving lower and the U.S. dollar weakening, creating a more favorable backdrop for risk assets.
Once Bitcoin broke above its recent trading range, the move accelerated rapidly.
More than 3 billion USD in crypto short positions were liquidated over 24 hours as traders betting on falling prices were forced to close positions.
That created additional buying pressure and helped Bitcoin move through 70,000 USD, 72,000 USD and 75,000 USD in quick succession.
At around 78,250 USD, the market is now testing levels not seen since late May.
ETF Inflows Add Support as 80,000 USD Comes Into View
Institutional demand has also improved. U.S. spot Bitcoin ETFs recorded more than 517 million USD in net inflows on Wednesday, the strongest daily result since early May. BlackRock’s IBIT accounted for about 285 million USD of the total.
Bitcoin has also moved decisively back above its 200-day moving average near 69,000 USD, an important long-term technical level.
Market Outlook and Key Levels
The speed of the rally increases the risk of short-term profit-taking, but momentum remains strong. The 75,000 USD area is now important to watch on any pullback. If buyers continue to defend the breakout, Bitcoin could soon test 80,000 USD.
A clean break above that level would shift attention toward 82,000–85,000 USD. A rapid fall back below 75,000 USD would suggest that much of the move was driven by the short squeeze rather than sustainable spot demand.
I got into cryptocurrencies at the end of 2020 and quickly became a Bitcoin maximalist. I’m interested in what’s happening in the financial markets, and in my free time I travel around Southeast Asia. At KryptoMagazine, I’m in charge of news and video content.