Bitcoin is closing in on $80,000 and already destroyed a record $4 billion in short bets

Bitcoin surged toward $80,000 on Friday, extending a three-day rally that has liquidated more than $4 billion in bearish bets and pushed the cryptocurrency to a three-month high.

Data from CryptoSlate shows Bitcoin climbed as high as $78,449, gaining more than 10% over the past 24 hours before easing to $77,873 as of press time.

The rally began Wednesday after the US Treasury said it would at least double liquidity-support buybacks for 10- to 30-year government debt, sending long-term yields lower and improving risk appetite.

Momentum accelerated as President Donald Trump hosted crypto executives at the White House and urged Congress to advance the CLARITY Act, while the SEC and CFTC moved ahead with additional industry-friendly proposals.

Institutional demand also strengthened. SoSoValue data shows spot Bitcoin exchange-traded funds have attracted more than $1 billion since Wednesday, adding fresh buying as Bitcoin broke through resistance levels that had capped earlier recovery attempts.

Derivatives positioning then magnified the move. CoinGlass data shows more than $4 billion in Bitcoin shorts have been liquidated since Wednesday as the asset jumped from around $65,000 through $70,000 and then above $75,000.