Analyst: Bitcoin's rise in this round is more than being squeezed by bears; demand for spot and ETF capital is improving
Comparing news, Bitcoin surpassed $7.3 million for the first time since June. The day before, the crypto market saw a record $2.75 billion in Bitcoin short positions being liquidated, and the bear squeeze further accelerated this round of gains. Analysts said that this round of the market is not entirely driven by bears' recovery. Demand for spot and ETF funding is improving, while the decline in US long-term treasury bond yields and the crypto regulatory environment is becoming clear, which also provides support for the market rebound. Gideon Hyams, co-founder of STS Digital, said that bear squeeze can start the market, but it is difficult to continue the trend alone. There are also factors behind this round of growth, such as the return of ETF funds, declining long-term yields, and a clearer US crypto regulatory path. The key to the market is whether Bitcoin can stand above the fluctuation range previously formed since June. Nicolai Søndergaard, senior research analyst at Nansen, believes that the bears' recovery has accelerated the breakthrough, but it is not the only reason for the rise in the market. Currently, Bitcoin's technical aspects have been improved, and it has received stronger spot and ETF demand support. However, as the bear squeeze is basically over and leveraged long positions increase, whether Bitcoin can continue to hold steady at $70,000 will depend on whether spot buying can continue. CryptoQuant founder Ki Young Ju said that Bitcoin spot and perpetual contract demand simultaneously turned positive for the first time since the record high in October 2025. He believes that the current scale of demand is still small, but if this trend continues for a month, it is reasonable to assume that the bear market is over and a new bull market cycle is starting. At the same time, market transaction activity has clearly rebounded. Paul Howard, senior director of Wincent, said that trading volume in the past 24 hours has increased about 5 times from the yearly low set last weekend. Previously, the market was in an environment of low volatility and low liquidity, and any favorable news could be amplified and push prices to fluctuate greatly. As of press time, Bitcoin reported around $7.33 million. Analysts believe that $70,000 is an important support level for this round of the market. If it continues to stabilize, the market is expected to evolve further towards a trending upward trend; if it falls back to around $69,700 to $69,000, it may just be a normal step back to the breakthrough.


