Bitcoin climbed above $72,000 on Thursday, extending a sharp recovery that has pushed BTC roughly 15% higher since the start of the week and forced billions of dollars in bearish positions out of the derivatives market.
The move followed a breakout above $70,000 for the first time since early June. Bitcoin later traded around the low-$72,000 area, while crypto-related stocks including Coinbase and Strategy also rallied. Reuters reported BTC near $71,700 earlier Thursday, up 3.4% on the day, before the cryptocurrency extended the move.
The rally has been supported by a combination of falling long-term Treasury yields, stronger U.S. crypto policy signals and a large short squeeze that accelerated once Bitcoin cleared major resistance.
Treasury Buybacks and Trump Crypto Push Spark Bitcoin Rally
The first catalyst came from the U.S. bond market. The Treasury increased the size of several long-dated debt buyback operations from $2 billion to at least $4 billion after the 30-year Treasury yield reached a 19-year high.
The move helped ease pressure on long-term yields and supported risk assets, including Bitcoin and technology stocks. Reuters said the Treasury expects the larger operations to add at least $14 billion in buybacks during the current quarter.
Political developments added another boost. President Donald Trump called on Congress to pass a “fair version” of the stalled CLARITY Act after meeting crypto executives and regulators at the White House. The legislation is intended to clarify how digital assets are divided between SEC and CFTC oversight.
Once BTC moved through $70,000, leveraged positioning magnified the rally. Crypto short liquidations surpassed $3 billion over two days, according to market data, marking one of the largest short-covering events in years.
$75,800 Becomes the Next Major BTC Test
Despite the breakout, on-chain data does not yet confirm a complete market reversal.
Bitcoin has reclaimed Glassnode's Short-Term Holder cost basis around $68,500, an important improvement after weeks of weakness. However, the firm's True Market Mean remains near $75,800, leaving another major resistance area above current prices.
Glassnode's weekly on-chain report also placed the Realized Profit/Loss Ratio near 0.75. The firm views a move above 2 as stronger evidence that the market has shifted into a more durable expansion phase.
That leaves Bitcoin in a much stronger position than it was only days ago, but with an important confirmation zone still ahead. Holding above roughly $68,500-$70,000 while spot demand turns positive would strengthen the case that the move toward $72,000 is developing into a broader recovery rather than simply a powerful short squeeze.
Bitcoin Spot Demand Is Close to Turning Positive
The more important question is whether genuine buying can replace forced short covering.
A CryptoQuant report published Aug. 18 showed Bitcoin's 30-day apparent spot demand improving dramatically, from -206,000 BTC on July 23 to roughly -5,000 BTC.
That leaves the metric close to positive territory for the first time since late February. CryptoQuant found that previous shifts from negative to positive apparent demand were followed by a median 60-day BTC return of 18.1%, with positive outcomes in 78% of the independent signals it examined.
The improvement follows an earlier period when spot demand lagged derivatives activity, making previous recoveries more vulnerable.
There are also signs larger holders have been positioning for higher prices. More than 38,000 BTC recently entered accumulation addresses around an estimated $70,000 average cost basis, making whale accumulation particularly relevant now that BTC has moved above that level.
