The market is back to the point where sentiment will be the biggest factor for investors.
From a technical perspective, crypto is back in risk mode as Bitcoin regains the $60,000 level. This is the answer to the whole “Has BTC bottomed?” Discuss at the table again. Considering that Bitcoin (BTC) has been consolidating in this range for nearly four weeks, the latest move begins to make a compelling case.
As expected, the rally caught the overexposed shorts off guard. According to CoinGlass data, Bitcoin started the third quarter with a short liquidation of approximately $126 million, triggering the largest bear trap in almost a month. This is a textbook short squeeze in which prices rise, short sellers rush in, and forced buying adds even more fuel to the rally.
Looking at the table above, something stands out. While long liquidations have dominated the last few weeks, BTC has fallen around $60,000. In the last week of June alone, approximately $340 million in long positions were wiped out in a single day. Despite this, Bitcoin never lost its structure.
This makes the recent long liquidations look like a healthy deleveraging event rather than panic selling. Investors eliminated much of the excess leverage, reset market positioning, and reduced one-sided crowding. This is the kind of setup that generally provides more room for a breakout to extend.
That’s what makes this rally different, according to AMBCrypto. The movement is not driven solely by purges. While the market had apparently already recovered from much of the overleverage, sentiment began to improve. With positioning looking much cleaner, of Bitcoin The latest move has a much stronger basis for developing into a broader market reversal.
STRC rises as Bitcoin rally gains stronger ground
Macro FUD has eased following Kevin Warsh’s recent comments on inflation.
For context, Warsh argued that the United States could emerge as one of the biggest beneficiaries of the AI boom. His thesis is pretty simple: AI-driven productivity should expand supply across the economy, easing inflation pressures that pushed the CPI to 4.2% in May and kept the Fed in a higher stance for longer.
But the biggest change isn’t just in the macro narrative. Instead, markets are starting to price in this possibility and the shift in sentiment is becoming increasingly visible across crypto. The clearest signal is the STRC Index, which is up more than 17% this week, recording the strongest weekly entry in history.
Considering that STRC has been a key financing vehicle behind the Strategy’s Bitcoin accumulation, this recovery is hard to ignore. This suggests that institutional capital is starting to flow back into the market.
This narrative also overlaps with Santiment’s final story data. Since May 6, Bitcoin ETFs have seen net outflows of approximately $8.475 billion; This is a level historically consistent with final stage capitulation. Simply put, the weak hands appear to have largely exited the market, leaving the market in a much healthier position.
Taken together, improving STRC inflows, a cleaner derivatives market, and signs of ETF capitulation suggest that Bitcoin’s latest move is more than just another short squeeze. It increasingly looks like the first leg of a broader market reversal.
