Bitcoin breaks through $75,500 while analyst calls current rally ‘premature’

Bitcoin (BTC) has broken through the $75,000 line, a high the cryptocurrency market has not seen in over three months.According to The Block's bitcoin price page, the world's largest cryptocurrency is up more than 8.9% over the past 24 hours, currently trading at $75,560.The main driver behind this rally is clear: the U.S. Treasury Department's announcement to at least double the size of liquidity support buyback operations for longer-dated nominal coupon securities across the 10- to 30-year segment.This was coupled with a few more positive catalysts, including the SEC's latest crypto proposal and a White House meeting with President Donald Trump and prominent crypto executives.This led to a surprise rally that liquidated over $2.75 billion in bitcoin shorts on Wednesday. As bitcoin continues to rally, short liquidations continue — in the past 24 hours, another $783.2 million in bitcoin positions were liquidated, with $747.7 million of that being short positions, according to Coinglass data.'Premature'Meanwhile, one analyst says the current rally appears overblown."Crypto is giving the Treasury's intervention far more credit than it deserves," said Shawn Young, chief analyst at MEXC Research. "The Treasury opened a pressure valve, and crypto priced it like a regime change. The bond move forced shorts out faster than it improved bitcoin's macro case."Young explained that Treasuries are still "competing aggressively" for the marginal capital bitcoin needs. The intensity of the short squeeze, he noted, shows that market positioning was already heavily one-sided before the Treasury expansion news — suggesting the announcement acted more as a trigger than as a strengthening of bitcoin's fundamentals."Bitcoin's push above $70,000 looks premature to me," Young added.Dominick John, analyst at Zeus Research, said the shorts wipeout will continue to push prices higher for the time being, but also use up a major source of forced buying. John said that once the crowded short positions have been flushed out, the rally has to stand on its own, driven by real spot demand, liquidity, and macro fundamentals."The real test now is to see if fresh capital steps in and turns a short squeeze into a sustained move," John said.Even if bitcoin's rally cools, the bigger picture for the cryptocurrency remains bullish, the analyst noted, citing Clarity's potential passage in September as a major catalyst that could turn the short-squeeze rally into sustainable market growth."The broader crypto market is shaking off its summer apathy, with the Bitcoin Fear & Greed Index back in Greed territory as risk appetite returns," John said. "While the rally remains selective, improving sentiment, tighter supply, and stronger fundamentals point to a market that's healing not just bouncing."The Bitcoin Fear & Greed Index has climbed to 62, its highest level since October 2025 when bitcoin last reached an all-time high, and is now firmly in "Greed" territory.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.