Bitcoin Up 23% as Treasury Buyback Sparks Short Squeeze
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- Bitcoin traded up 6% at $77,132.65 on Friday, putting it on track for a roughly 23% weekly gain from about $62,800 at the start of the week.
- Coinbase climbed 7% and Strategy rose 6% as crypto-linked equities tracked Bitcoin's rally higher.
- The move kicked off Wednesday when Treasury yields pulled back sharply after the U.S. Treasury doubled its buybacks of long-dated government debt, easing pressure on risk assets per Sygnum APAC's Max Stuedlein.
- CoinGlass data shows roughly $2.7 billion in crypto short positions were liquidated in a massive short squeeze that amplified Bitcoin's move.
- Thursday's sentiment got a further boost from a White House and crypto-industry push to pass the Clarity Act, though its chances of passing 'appear relatively slim' per the report.
- Despite the rally, Bitcoin remains well below its mid-January 2026 high of $94,820 and its all-time high of $126,198 hit on October 6 last year.
- Lucy Gazmararian, founder of Token Bay Capital, told CNBC she's expecting 'one final flush' — another 20% drop — before the cycle turns, framing Bitcoin as 'a play against monetary debasement.'
Why it matters: Roughly $2.7 billion in leveraged crypto shorts were wiped out as Bitcoin surged 23% this week, but Token Bay Capital's Lucy Gazmararian warned of a possible 'final flush' drop of another 20%, and the Clarity Act driving Thursday's optimism faces slim passage odds — leaving the rally on fragile underpinnings despite the bullish Treasury catalyst.
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