Bitcoin rallies to $70K after a brief surge above that level. The move marks the first time since June 2.
Short liquidations reached $2.91 billion over the past 24 hours. A total of 172,202 traders faced liquidation.
Why Bitcoin rallies to $70K matters
Two key developments drove the price move. The Treasury will double long-end debt buybacks. This increase goes to at least $4 billion each.
President Donald Trump also suggested a government Bitcoin purchase. The White House reportedly discussed this idea.
Those catalysts pushed into crowded short positioning. Liquidations then amplified the move considerably. Closing a short requires buying the asset. This lifts the price and triggers the next tier.
Bitcoin accounted for $1.59 billion of total liquidations. Shorts absorbed $2.91 billion against $261.07 million in longs. BTC remains above $70K and trades around $71,305. It remains up 7.5% over 24 hours nevertheless.
CryptoQuant says spot demand is close to turning
CryptoQuant flagged a recovery in spot demand before the rally. The 30-day apparent spot demand climbed from negative levels. It moved from -206,000 BTC on July 23 to roughly -5,000.
The metric now sits close to positive territory. This is the first time since February 26. Bitcoin historically posts gains when spot demand shifts positive.
The median return over 60 days is 18.1%. Such signals produced positive outcomes 78% of the time.
“Spot demand is the signal that works,” the report read.
Bitcoin now stands at a potential inflection point. A shift toward positive spot demand is critical. It could determine whether the rally becomes sustained.
Glassnode points to levels Bitcoin has not reclaimed
Glassnode places the Short-Term Holder cost basis at $68,500. Bitcoin trades above that mark currently. Nevertheless, the True Market Mean sits higher at $75,800.
“For as long as price remains below the Short-Term Holder Cost Basis, on-chain valuation models will continue to treat the market as capitulating,” the firm said.
The Realized Profit/Loss Ratio adds a second brake. That metric reads 0.75 currently. This is well under the 2 threshold. Glassnode treats 2 as evidence of a genuine shift.
“Until this metric reclaims the 2 threshold, any recovery should be treated as a local rally rather than a regime change,” it added.
Bitcoin’s recent move marks a significant recovery. The on-chain data suggests the rally has yet to prove itself nevertheless. A sustained move above key on-chain resistance would strengthen the case. Positive spot demand would also help.
Until then, Bitcoin’s latest surge remains promising. It is nevertheless an unconfirmed reversal.
