Bitcoin Holds $78K After $3B Short Squeeze, Altcoins Lag
What happened: Bitcoin steadied near $78,000 on Monday after surging 24% the previous week, triggered by U.
What happened: Bitcoin steadied near $78,000 on Monday after surging 24% the previous week, triggered by U.S. Treasury Secretary Scott Bessent's announcement to double long-bond buybacks from $2B to $4B per operation. This policy shift ignited a massive short squeeze, liquidating $3-4 billion in bearish positions, and drove BTC from ~$62,800 to an intraweek high of $79,500. Despite the rally, most altcoins consolidated, with only select names outperforming.
Why it matters: The episode demonstrates the growing sensitivity of crypto markets to macroeconomic policy, particularly U.S. Treasury actions. The scale of short liquidations underscores the leverage and fragility in crypto derivatives markets. While bitcoin benefited from the "debasement trade" narrative, the lack of broad altcoin participation suggests a cautious risk appetite beyond BTC.