Analysts See Strong Bitcoin Rally, But Profit-Taking Risk Remains

Why Bitfinex Sees a Longer Runway Than a Squeeze

Bitcoin’s climb to a multi-month high has left every buyer from the past five months sitting on a paper gain. The price peaked at $79,491 on Aug. 21, and analysts at crypto exchange Bitfinex said spot demand and short covering, not fresh leverage, carried the move. Rallies built on borrowed money unwind faster than rallies built on cash purchases.

In a statement to Bitcoin.com News, Bitfinex analysts shared:

“Squeeze-led rallies usually carry a question mark over whether they hold, because liquidations do the lifting.”

“Here the combination of ETF demand, the macro shift and the absence of heavy selling gives this one a longer runway, with small retracements along the way,” they added.

What Pushed Yields Down and Bitcoin Up

The U.S. Department of the Treasury announced on Aug. 19 that it would double the maximum size of its long-end liquidity support buybacks. Each operation will now reach at least $4 billion, up from $2 billion, and the larger sizes apply from Sept. 9 through Nov. 4.

Liquidity conditions have shaped $BTC’s price for a decade, with bitcoin’s four-year boom-and-bust cycle providing historical context for those shifts. Global liquidity indices have shown roughly 90% correlation with bitcoin since 2015, while cheaper funding at the long end of the curve tends to support risk assets.