Bitcoin Pushes Above $81,000 as Short Sellers Get Squeezed

Bitcoin pushed above $81,000 on Tuesday, returning to its highest level since May as the latest rally continued to force short sellers out of the market.

BTC has now moved through the $70,000, $75,000 and $80,000 levels in quick succession. The move has also lifted major altcoins, with Ethereum and Solana gaining alongside Bitcoin.

Short covering has added fuel to the rally. CoinGlass data showed more than 95,000 crypto traders were liquidated over the past 24 hours, with total liquidations reaching around $651 million. Short positions accounted for the larger share.

There is also a broader macro story behind the move.

Bitcoin and gold have been rising together as investors revisit the so-called debasement trade — a strategy built around concerns over US fiscal deficits, the dollar and the long-term value of fiat currencies. The recent Treasury buyback announcement has helped push that theme back into focus.

Regulatory developments in the US are providing another tailwind for crypto sentiment, while renewed inflows into Bitcoin ETFs suggest institutional demand is beginning to recover.

The move above $80,000 is encouraging, but the market has moved quickly.

The key test now is whether Bitcoin can hold above $80,000 and turn the level into support. If it does, the rally could attract another wave of buyers. If momentum fades, the large amount of recent short covering could leave the market vulnerable to a pullback.

For now, Bitcoin and gold are telling a similar story: investors are looking beyond traditional assets as concerns over the dollar and US fiscal outlook return to the market.