Bitcoin Surges 25% Ending 52-Day Bear Market

Bitcoin (BTC) has shown resilience, holding above the $93,000 mark on April 24, indicating a potential end to the 52-day bear market that bottomed at $74,400. This rally has caught many bearish traders off guard, leading to significant liquidations of short positions. The recent price surge has been driven primarily by spot market volumes, which is seen as a positive sign for a sustainable bull run.

The top traders’ long-to-short ratio on major exchanges like Binance and OKX has been fluctuating, reflecting a mixed sentiment among professional traders. On Binance, the ratio stands at 1.5x, down from 2x ten days earlier, while on OKX, it has dropped to 0.9x from a peak of 1.1x on April 17. This suggests that while there is still a preference for long positions, the momentum has waned slightly.

Bitcoin’s rally has coincided with a more conciliatory stance from US President Donald Trump regarding import tariffs and his criticism of Federal Reserve Chair Jerome Powell. Trump’s statement that he has “no intention” of firing Powell marks a shift in his rhetoric, which has contributed to a more stable economic environment. Additionally, the US dollar has weakened against other major currencies, pushing the DXY index below 99 for the first time in three years. This has further bolstered Bitcoin’s performance, securing its place among the world’s top eight tradable assets with a market capitalization of $1.84 trillion.

The sharp move above $90,000 resulted in over $390 million in leveraged short futures liquidations between April 21 and April 22. Despite this, aggregate open interest in BTC futures remains just 5% below its all-time high, indicating that bearish traders have not fully exited their positions. If Bitcoin’s price maintains its upward momentum and breaks above $95,000, an additional $700 million in short futures positions could be liquidated, according to CoinGlass data. This potential short squeeze could be challenging for bears, given the robust inflows into spot Bitcoin exchange-traded funds (ETFs), which totaled over $2.2 billion between April 21 and April 23.

A newly announced joint venture involving SoftBank, Cantor Fitzgerald, and Tether aims to accumulate Bitcoin through convertible bonds and equity financing. Named “Twenty One Capital,” the Bitcoin treasury company is led by Strike founder Jack Mallers and plans to launch with 42,000 BTC. This initiative could further strengthen the bullish case for Bitcoin.

The muted response from top traders in BTC margin and futures markets suggests that the recent buying pressure has originated mainly from spot markets. This is generally considered a positive indicator for a sustainable bull run. The longer Bitcoin consolidates above $90,000, the greater the pressure on bears to cover their shorts, as this level reinforces the narrative that Bitcoin is decoupling from the stock market. This could provide the confidence needed to challenge the $100,000 psychological threshold.