Bitcoin breaks $70,000 for first time in over two months

Dubai: Bitcoin surged past the $70,000 mark for the first time in over two months on Thursday, as a two-day rally gained momentum following lower US Treasury yields, fresh institutional investments, and renewed optimism about regulatory progress in Washington. The world's largest cryptocurrency rose nearly 4.1% to over $71,900, marking its highest level since May 31.

Traders, who had positioned for further declines, were surprised by the rapid rebound. Over $3 billion in cryptocurrency short positions were liquidated in the past 24 hours, with $1 billion in Bitcoin shorts wiped out within an hour during Wednesday's rally. Other leading cryptocurrencies, including Ether, Solana, and XRP, also saw gains of up to 5.3%, 5%, and over 5.5%, respectively.

The surge in Bitcoin's price was primarily driven by a decline in US bond yields, which made riskier assets more appealing to investors. A weaker dollar also supported the cryptocurrency. US-listed spot Bitcoin exchange-traded funds attracted $517 million in inflows on Wednesday, the largest daily increase since May. This brought the monthly inflows to around $1.48 billion, with the broader group of 13 US-listed Bitcoin ETFs receiving over $1 billion so far this week, compared to $389.7 million of outflows last week.

Additionally, major investors, known as "whales," added around $2.75 billion worth of Bitcoin in the past 60 days. Improved sentiment was also boosted by US President Donald Trump's meeting with cryptocurrency executives and his call for the Senate to advance the Clarity Act, a bill aimed at establishing clearer regulatory guidelines for the US digital asset market.

The jump in Bitcoin's price has revived activity in Bitcoin options, with traders building significant positions around key price levels. Deribit data showed $1.5 billion in Bitcoin call options positioned at $70,000, which gain value when the cryptocurrency rises above this level. Around $1.4 billion was positioned in puts at $60,000, benefitting from a decline below that price. Traders are preparing for continued price swings rather than betting on a single direction.