Bitcoin climbed back above $72,000 on Thursday, reaching an intraday high of $72,408 before easing to around $71,423, extending a two-day recovery that has lifted the cryptocurrency by nearly 15% since Monday. The move marks Bitcoin’s highest price since June 2 and comes as easier financial conditions, a weaker dollar and aggressive short-position liquidations combine to reinforce the latest rebound.
Bitcoin Reclaims a Key Level as Short Positions Unwind
The latest advance represents a significant recovery from Bitcoin’s June selloff. On June 2, Bitcoin fell from approximately $71,765 to $67,895 in a single session before continuing lower and reaching a low near $57,832 by the end of the month. Thursday’s high of $72,408 therefore places Bitcoin above the level where that earlier decline began.
The rally has also produced substantial stress among leveraged bearish traders. According to CoinGlass data cited in the source, 174,416 traders were liquidated over the previous 24 hours, with total liquidations reaching approximately $2.85 billion. Forced purchases to close losing short positions can accelerate an advance because each liquidation creates additional buying pressure, potentially triggering further liquidations as prices rise.
Treasury Bond Buybacks Add a Macro Catalyst
The cryptocurrency rally has unfolded alongside a notable shift in U.S. financial conditions. The U.S. Treasury announced that it would at least double its long-bond buybacks, increasing the maximum size of each operation from $2 billion to $4 billion for 10-to-30-year securities beginning September 9.
The announcement pushed bond yields lower and weakened the U.S. dollar, creating a backdrop that can be supportive of risk-sensitive assets. The source describes the move as “QE Lite” because Treasury purchases of its own debt can ease financial conditions in a manner that resembles some effects associated with earlier central-bank bond-buying programs. For Bitcoin, the combination of lower yields, a softer dollar and renewed risk appetite provides an important macro explanation for the speed of the current rebound.
Sentiment Reverses as Bitcoin Tests Its Technical Downtrend
Market positioning has shifted rapidly alongside the price. On the Myriad prediction market, traders had been assigning roughly 70% odds to Bitcoin falling toward $55,000 just one day earlier. By Wednesday afternoon, those expectations had moved close to a 50-50 split, illustrating how quickly sentiment can change during a leveraged crypto-market rebound.
The advance is also testing Bitcoin’s death cross, a technical pattern created when the 50-day exponential moving average falls below the 200-day EMA. Traders often interpret the formation as evidence of deteriorating medium-term momentum, making Bitcoin’s ability to remain above $70,000 particularly important for determining whether the latest rally can develop beyond a short squeeze.
Bitcoin’s move toward $72,000 therefore reflects more than a simple price recovery. The combination of nearly 15% gains since Monday, billions of dollars in liquidations and easier financial conditions has created a powerful short-term momentum event. Whether that momentum persists will depend on whether new spot demand replaces the forced buying generated by liquidations and whether macro conditions remain supportive. The market will also be watching whether Bitcoin can sustain levels above its June peak without another wave of leveraged positioning destabilizing the recovery.
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