Does Bitcoin at $79,000 Mean a Bull Run Has Started? Experts Say 'It's Complicated'

Bitcoin (CRYPTO: BTC) trades around $79,000 on Tuesday as discussions continue on whether the sudden 20% surge was mainly driven by short liquidations or mark a durable cycle bottom.

Did Three Factors Create “Dry Kindle” for BTC?

In a panel interview with Scott Melker on Monday, Galaxy Digital head of research Alex Thorn highlighted a combination of improving fund flows, deeply oversold conditions and forced liquidations that helped propel Bitcoin toward $80,000.

Bitcoin spot ETFs attracted roughly $1.9 billion in weekly net inflows, their strongest showing since October 2025, according to Thorn. Combined with flows into other crypto products, more than $2.6 billion returned to the asset class.

The rally also caught heavily positioned bears off guard, triggering more than $2 billion in short liquidations.

Thorn said the positioning was particularly striking because traders had accumulated large, short exposure near BTC’s 52-week lows while volatility was historically depressed.

That combination created “dry kindling” for a sharp move once a catalyst emerged.

Treasury Purchases—The Main Catalyst

The spark may have come from the Treasury’s plans to expand purchases of longer-dated government debt.