Bitcoin briefly touched $65,000 on Tuesday, a 0.5% daily gain that pushed its weekly advance past 2%. The move wiped out $56 million in short liquidations even as geopolitical tensions in the Middle East escalated, and Skybridge Capital's Anthony Scaramucci argues the drawdown looks mild next to past bear markets.
Bitcoin punishes short sellers
Bitcoin surged to $65,000 shortly after 9:30 a.m. EST, adding roughly $1,000 in a single hour after fluctuating between $64,000 and $64,300 for almost ten hours. It then eased to $64,744 by 2:35 p.m. EST, leaving the coin up 0.5% for the day and over 2% for the week, with its market cap nearing $1.3 trillion.
The spike hit leveraged short sellers hard. Coinglass data show the swing wiped out $56 million in short positions against just $4 million in long liquidations, part of $108 million in total liquidations across the crypto market. The move followed Strategy's disclosure that it had not sold bitcoin in the past week, though some analysts warn a cluster of sell orders near $65,000 suggests a breakout is not imminent.
Scaramucci and Glassnode see buyers stepping in
Skybridge Capital founder Anthony Scaramucci offered a contrarian read on the current short squeeze. According to a post on X: "we've only had a 55% drop", he said, calling that pattern a sign many buyers are already positioning for the next upswing.
Glassnode backed that view, noting that strong-handed holders are actively buying bitcoin as profit-taking slows, a pattern the firm compares to 2022's market structure. The blockchain analytics platform found that conviction buyers added the most bitcoin when the asset dropped to $60,000 in January.
Source: Bitcoin News
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