Bitcoin Tops $73,000 for First Time Since June as Spot, ETF Demand Rebound

Bitcoin climbed above $73,000 for the first time since June, with analysts saying the latest advance is being driven not only by a short squeeze but also by improving spot and exchange-traded fund demand.

BlockBeats reported on Aug. 21 that Gideon Hyams, co-founder of STS Digital, said a short squeeze can kick off a rally but is not enough on its own to sustain a trend. He cited a recovery in ETF inflows, lower long-term US Treasury yields and easing uncertainty over crypto regulation as additional support for the move.

Bitcoin was trading at about $73,800. The rally accelerated a day earlier after about $2.75 billion worth of Bitcoin short positions were liquidated.

Nicolai Søndergaard, a senior research analyst at Nansen, also said the unwinding of short positions helped speed up the breakout but was not the only reason for the gain. Bitcoin's technical picture has improved, while spot and ETF demand is also strengthening.

Still, the short squeeze has largely played out and leveraged long positions have increased, suggesting the rally will need continued spot buying to keep going. Traders are viewing $70,000 as a key support level for the current advance.

Ki Young Ju, chief executive officer of CryptoQuant, said demand for spot Bitcoin and perpetual futures turned positive at the same time for the first time since the record high in October 2025. He said demand remains limited for now, but if that trend continues for a month, it would indicate the bear market has ended and a new bull cycle has begun.

Trading activity has also risen sharply. Paul Howard, a senior director at Wincent, said volume over the past 24 hours was about five times higher than the year-to-date low recorded last weekend. Because both volatility and liquidity had been subdued, he said favorable news can have an outsized impact on prices.