CoinDesk
Bitcoin blasted past $70,000 this week for the first time since June as more than $4 billion in crypto short positions were liquidated in a squeeze-led rally. Ether led the major caps with an 18% weekly gain, spiking nearly 19% in 24 hours at one point on Wednesday, while Bitcoin climbed roughly 8.8%. The move was brutal for bears: a Hyperliquid wallet that had previously made $49 million shorting crypto lost $24 million on an ether short in about 12 seconds.
Why it matters
The rally didn't come out of nowhere. The U.S. Treasury's buyback program supported liquidity in government debt, and longtime bond investor Mark Connors argued the effect could help set up Bitcoin's next move toward $180,000. Bitfinex analysts said squeeze-led rallies usually carry a question mark, but the combination of ETF demand, the macro shift and the absence of heavy selling gives this one a longer runway with small retracements.
Washington moved on multiple fronts at the same time. President Trump pressed Congress to advance the Clarity Act during a White House gathering with tech and finance executives. CFTC Chairman Mike Selig told staff to prepare crypto regulations even if the bill fails, the SEC revived its Regulation Crypto proposal, and the Treasury proposed rules to implement the GENIUS Act. Hyperliquid's HYPE token jumped 11% after Trump said Selig is working to bring the venue into the U.S.
Market impact
Stablecoins broke further into mainstream payments. Visa began hunting a new stablecoin settlement partner after Mastercard's $1.8 billion BVNK acquisition. HSBC and Standard Chartered completed the first live banking transaction on Swift's 24/7 ledger, and Elon Musk's X was revealed to be exploring stablecoins to pay influencers and content creators.
Corporate crypto treasuries suddenly looked healthier. Strategy sat on roughly $1.4 billion of unrealized profit as Bitcoin surged, and Tom Lee's BitMine lifted its ether position to 4.8% of supply. Coldcard released new firmware after a $114 million security failure, but compromised wallets aren't safe without key migration. Bitcoin traders now watch whether $80,000 is in reach, though Jefferies analyst Andrew Moss called it premature to declare an end to the broader correction.
Frequently asked questions
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How much did Bitcoin and Ether rally this week?
Bitcoin crossed $70,000 for the first time since June, up roughly 8.8% over seven days, while Ether led the major caps with an 18% weekly gain and a nearly 19% spike over a 24-hour stretch on Wednesday.
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How big was the short squeeze?
More than $4 billion in crypto short positions were liquidated across the two-day rally. The single sharpest casualty was a Hyperliquid wallet that had previously made $49 million shorting crypto and lost $24 million on an ether short in about 12 seconds.
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What did Washington do on crypto this week?
President Trump pressed Congress to advance the Clarity Act, CFTC Chairman Mike Selig told staff to draft crypto rules even if the bill fails, the SEC revived its Regulation Crypto proposal, and the Treasury proposed rules to implement the GENIUS Act.
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Why are stablecoins moving into mainstream payments?
Visa began hunting a new stablecoin settlement partner after Mastercard's $1.8 billion BVNK acquisition, HSBC and Standard Chartered completed the first live banking transaction on Swift's 24/7 ledger, and Elon Musk's X is exploring stablecoins to pay influencers and content creators.
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Is this the start of a new bull run?
Bitfinex analysts said the combination of ETF demand, a macro liquidity shift and the absence of heavy selling gives the squeeze-led rally a longer runway than usual, though Jefferies' Andrew Moss called it premature to declare an end to the broader correction.
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