Bitcoin rally tests $75,000 level in massive short squeeze

Bitcoin (BTC) and other major cryptocurrencies extended their rally late Monday, with prices climbing alongside a wave of short liquidations and improving macro sentiment.

Bitcoin rose roughly 4% over the past 24 hours to reach $75,653 at around 10:00 p.m. ET Monday, before sliding back down to $74,300 hours later, according to The Block’s price page. Ethereum rose 3.28% to $2,315, while XRP advanced 5% to $1.54.

The broader move was accompanied by roughly $609 million in total crypto liquidations in the past 24 hours, including $485.6 million in short positions, according to public data aggregated on Coinglass.

Zeus Research analyst Dominick John told The Block that massive short liquidations fueled a squeeze-driven extension higher. However, he remains skeptical that the move will spark a long-term rally.

“Squeeze-driven moves are typically short-lived without sustained real demand, likely fading from days to a couple of weeks,” John said.

Market sentiment also showed signs of recovery. The Crypto Fear & Greed Index stood at 28 in “fear” territory late Monday, moving out of “extreme fear” after lingering in that zone over the past week.

Institutional demand

Analysts said the latest price action appears largely driven by a combination of spot demand and improving macro conditions.

“Bitcoin’s move toward $76,000 and the stronger rebound in Ethereum appear largely flow-driven,” said Rick Maeda, research associate at Presto Research. He pointed to renewed inflows into U.S. spot bitcoin exchange-traded funds and continued corporate buying as key sources of demand.

U.S. spot bitcoin ETFs saw $767.3 million in net inflows last week, marking a third consecutive week of positive flows, according to SoSoValue data. Spot ether ETFs also recorded $160.8 million in inflows over the same period.

Maeda noted that stabilizing risk sentiment — as geopolitical tensions and oil-driven inflation fears ease — has also supported the rebound in high-beta assets such as cryptocurrencies. Still, he cautioned that the rally’s durability will depend on whether these flows continue.

“Institutional spot demand also appears to have returned,” said Jeff Ko, chief analyst at CoinEx. “Consistent dip-buying and spot ETF net inflows over the past week point to healthier underlying demand and a more constructive structural backdrop.”

John of Zeus also attributed the rally to strong spot flows and positioning dynamics in derivatives markets.

“BTC’s breakout is boosted by robust spot flows and positioning dynamics, while ETH leads on its strongest ETF inflows since mid-January alongside continued treasury accumulation,” John said.

Equities rise

Broader markets reflected a mixed but stabilizing macro backdrop. U.S. equities rose on Monday, with the Dow Jones Industrial Average up 0.83%, the S&P 500 gaining 1.01%, and the Nasdaq Composite climbing 1.22%, as investors looked past last week’s losses tied to the Iran conflict.

Stocks advanced in early Asian trading on Tuesday, with South Korea’s Kospi jumping 2.6% in morning trade and Japan’s Nikkei 225 rising 0.5%. Hong Kong’s Hang Seng added 1%.

Oil prices, however, resumed their climb after briefly easing, rising more than 2% late Monday as uncertainty persisted over a U.S.-led coalition to secure shipping through the Strait of Hormuz. Brent crude advanced 2.9% to $103 per barrel, while WTI crude gained 2.7% to $96.03.

On Monday, U.S. President Donald Trump urged other countries to help address disruptions in the Strait of Hormuz after Iran curtailed traffic through the vital shipping route, which carries roughly one-fifth of global oil supply.

“While I do think the [crypto price] momentum is real, the sustainability of the move still depends heavily on how the macro picture evolves,” said Ko. “As I mentioned before, oil remains the key transmission channel, and bitcoin is increasingly tied to the broader macro complex, including commodities, yields, and the U.S. dollar.”

Looking ahead, analysts broadly agree that the next phase of the crypto rally will hinge on whether institutional inflows persist and how macro risks develop. Traders are watching ETF flows, oil prices, and upcoming economic data — including producer price index figures and the Federal Reserve’s March 18 rate decision — for further direction.