Bitcoin Breaks $78,000 as ETF Inflows and Easing Tensions Lift Market

Bitcoin News

BTC climbed above $78,000 early Wednesday, with the broader crypto market rising approximately 2.3% over 24 hours as strong institutional inflows and reduced geopolitical pressure supported prices across major assets.

Bitcoin

at $78,015 as of Wednesday, up 2.2% on the day. ETH rose 2.7% to $2,386 in the same period. Zeus Research analyst Dominick John said the move reflected a combination of easing geopolitical conditions, strong ETF inflows, and short-side positioning dynamics. "As Bitcoin broke above $75K, short positions were liquidated, triggering a mechanical squeeze," John said.

Spot Bitcoin

drew approximately $1.8 billion in net inflows across three consecutive weeks, providing consistent demand against available supply. Strategy, led by Michael Saylor, also recently added to its holdings and surpassed BlackRock to become the largest institutional BTC holder.

A ceasefire extension announcement by one party reduced near-term geopolitical risk during the session, though the situation remained unsettled after the other party reportedly responded critically and accused its counterpart of blocking access to its ports.

K33 Research flagged conditions for additional short squeezes in the near term. The firm noted that funding rates declined over the past week while prices reached three-month highs, and said open interest has been trending with higher highs and higher lows. "Gradually rising leverage alongside deeply negative funding rates suggests that short positions are steadily building in perps, increasing both the likelihood and potential magnitude of a short squeeze ahead," K33 said.