Bitcoin Cracks $72,500: What Do Prediction Markets Say Happens Next?

Bitcoin (CRYPTO: BTC) climbed nearly 7% Thursday to approximately $72,500 after a $500 million short squeeze helped fuel its strongest volatility-adjusted breakout since October 2023.

According to Glassnode co-founder Rafael Schultze-Kraft, similar breakouts have historically preceded gains of nearly 85% over six months, though prediction markets suggest traders remain cautious.

The $500 Million Squeeze Behind Bitcoin’s Breakout

Analytics firm Glassnode said roughly $500 million worth of short positions were liquidated within minutes as Bitcoin pushed above $69,000 Wednesday.

When exchanges automatically closed those bearish positions, traders were forced to buy Bitcoin, accelerating the rally. Glassnode said its liquidation heatmaps had shown the pressure building for up to 10 days beforehand.

The move followed the Treasury’s announcement that it would expand long-term bond buybacks, which briefly pushed yields lower and lifted risk assets.

Strategy Inc. (NASDAQ:MSTR) and Coinbase Global Inc. (NASDAQ:COIN) also climbed.

Why Glassnode Says This Breakout Is Different

Glassnode said the move measured 5.8 times Bitcoin’s typical daily volatility over the preceding month, making it the strongest such advance since October 2023.