Bitcoin's breakout above its 50-week moving average sparked a $648 million short squeeze, while cooling oil prices and lower bond yields provided a broader tailwind for the cryptocurrency market and related stocks.
Bitcoin reclaimed the 50-week moving average for the first time in 45 weeks and surged to $85,000, triggering $648 million in short liquidations.
Brent crude fell for a fourth straight session to about $102, easing inflation fears and pressuring Treasury yields.
MicroStrategy rose 7% as Bitcoin's reclaim of the 50-week moving average triggered a short squeeze.
Ethereum rose 5.4% to $2,724 as the entire crypto market rallied on lower oil prices and a strong Bitcoin weekly close.
Marathon Digital gained 6% as falling oil prices and lower Treasury yields lifted crypto-equity proxies.
XRP gained 6.4% as negative funding rates squeezed short sellers during the rally.
Coinbase rose 5% alongside the broader crypto rally driven by oil's decline and Bitcoin's breakout.
S&P 500 futures rose more than half a percent as lower oil prices and a crypto rally boosted risk sentiment.
Solana climbed 6.6% to $115, benefiting from the broad crypto market uptrend.
Monero increased by about 13%, outperforming the broader crypto market during the rally.
BNB rose 3.9% to $781 as part of the broad crypto market rally.
Zcash gained 4.5% to $1,505, moving higher with the rest of the cryptocurrency market.
Hyperliquid rose 4.7% to $95, reflecting the positive sentiment across digital assets.
Bitcoin surged to $85,000 after reclaiming its 50-week moving average, triggering a massive $648 million liquidation of short positions. The rally, supported by falling oil prices and declining Treasury yields, also lifted crypto-linked equities like MicroStrategy and Coinbase. Despite the momentum, analysts warn that institutional ETF inflows remain thin, making the sustainability of the move dependent on oil prices staying soft.
The rally was driven by a confluence of macroeconomic factors, specifically a four-day decline in oil prices and a subsequent drop in 10-year Treasury yields, which increased the attractiveness of non-interest-bearing assets like Bitcoin.
The 50-week moving average serves as a critical technical dividing line between bull and bear markets. Bitcoin's close above this level suggests that the July lows of $57,700 may hold, as historical data shows it rarely drops to new lows after such a reclaim.