Bitcoin rebounded to near $70,000 as President Trump urged Congress to advance crypto regulation and a wave of forced short covering added momentum. Short positions worth $2.74 billion were liquidated in 24 hours, the eighth-largest such event in crypto history. Traders now watch whether Bitcoin holds its breakout levels or whether the rally turns into a bull trap.
Bitcoin rose 7.9% to $69,387.7 by 02:06 ET on Thursday, touching a near three-month high of $69,861.4 but stopping short of $70,000. The move capped a broad recovery rally across cryptocurrencies after months of underperformance sparked bargain buying this week.
Short squeeze fuels the breakout
A sharp price move forced billions of dollars in short positions out of the market. More than $2.74 billion in short positions were liquidated in 24 hours, making it the eighth-largest liquidation event in crypto history. Bitcoin led the wave with around $1.42 billion in liquidations, while Ethereum followed with $1.13 billion, and long positions accounted for only about $255.09 million of the total.
K33 Research said Bitcoin futures saw nearly $1.1 billion in short positions liquidated in one day, the first time that threshold was crossed in a single day, topping prior records of $757 million in May 2021 and $694 million in November 2025. The derivatives-driven acceleration also caught individual traders: blockchain tracker Lookonchain reported a trader lost $23.9 million after a 50,000 ETH short worth about $106 million was wiped out.
Trump's regulatory push adds momentum
Cryptos also gained on improving risk appetite after the U.S. Treasury said it will double the size of its debt buyback operations, sparking a sharp drop in yields. Trump met crypto and prediction-market executives at the White House on Wednesday. According to Investing.com, he urged Congress to pass "a fair version" of the CLARITY Act, a bill crypto proponents say would establish a broad U.S. regulatory framework for digital assets.
SEC Chair Paul Atkins has described establishing clear digital-asset rules as a major priority. Senate Banking Committee Chairman Tim Scott has continued pushing for the CLARITY Act's passage, though the bill has faced delays in the Senate.
Ether jumped 17% to $2,244.60 during the rally, while XRP and Solana each gained 10%.
Bulls face a test near $70,500
Bitcoin has bounced from the $63,000 support zone and broken back above $64,000, $65,700 and $67,200, turning them into new support zones, according to crypto trader The Martini Guy. The trader said Bitcoin was trading near $69,322 after testing the $70,500 resistance, and that a break and hold above that level could open the way toward $71,500 and $72,000.
More than $1 billion in Bitcoin shorts were reportedly liquidated within roughly an hour at the sharpest part of the move, meaning much of the immediate upside came from forced buying rather than fresh spot demand. A quick rejection below the breakout levels could still turn the rally into a bull trap.
Sources: Investing.com, Coinpedia, Coinpedia
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