Bitcoin surges to $70k: Why the crypto market is exploding this weekend

US Inflation Slows: The Long-Awaited Macroeconomic Catalyst

The main driver behind this surge comes from the traditional economy. The latest US inflation (CPI) figures have just been released, and they’re better than expected. With annual inflation slowing to 2.4% (down from 2.7% the previous month), pressure on the Federal Reserve (Fed) is significantly decreasing.

For crypto investors, this signals potential monetary easing. When inflation drops, the likelihood of the Fed maintaining high interest rates diminishes, which mechanically favors risk-on assets like Bitcoin and altcoins. The market now anticipates a more accommodative policy, restoring institutional appetite.

This news acted as a spark on an oversold market. Bitcoin (BTC) immediately reacted by climbing 5% to trade around $70,263, pulling along Ethereum (ETH), Solana (SOL), and XRP, which are showing even more impressive performances, ranging between +6% and +10%.

Short Squeeze and ETF Return: The Explosive Cocktail

Beyond macroeconomics, the market structure itself amplified this movement. We’re witnessing a textbook case of a massive Short Squeeze during a weekend when liquidity is low. Many traders were betting on a continuation of the decline and opened short positions with leverage. The brutal price recovery caught them off guard. This also means it’s manipulation and a liquidity hunt, so caution remains warranted.

According to on-chain data, more than $365 million worth of positions were liquidated in 24 hours, with a majority being shorts (approximately $202 million). These liquidations force sellers to urgently buy back their positions, further fueling buying pressure and propelling prices upward, creating a snowball effect typical of violent recovery phases.

Meanwhile, we’re observing a return of inflows to Spot Bitcoin ETFs. After several days of net outflows that had dampened investor sentiment, asset managers are recording subscriptions again. This return of “Smart Money” validates the current support level and reassures retail investors who were hesitant to re-enter the market.

Bitcoin at $70,000: Simple Bounce or Bull Run Resumption?

With Bitcoin testing the psychological zone of $70,000 again, the technical setup is conducive to a trend reversal. Many traders are waiting for this rally to reach $72,000-74,000 to short the market.

If BTC manages to transform the $80,000 resistance into solid support within the next 48 hours, then the path to a new ATH could open up in the long term. However, the market must digest these rapid gains and confirm this trend with sustained volumes throughout the weekend. And most importantly, maintain them this Monday with market opening.

As Killa indicates, the vast majority of weekend pumps have retraced 3 to 5 days later.

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