Bitcoin rally could hold as spot buying outpaces leverage: Bitfinex analysts

Bitcoin has climbed about 23% over the past week to $77,535 as Bitfinex analysts say spot buying, ETF inflows and limited leverage could give the rally more staying power than a typical short squeeze. Summary Bitcoin rose 10%–11% during the breakout while open interest increased only about 4%. Bitfinex identified $68,000–$69,000 as the main support zone for the recovery. U.S. spot Bitcoin ETFs attracted more than $1.1 billion across Aug. 19 and Aug. 20. Rising Treasury yields and profitable coins moving to exchanges could threaten the advance. Why Bitfinex sees more runway for Bitcoin Bitfinex analysts told crypto.news that forced liquidations helped Bitcoin break out of its previous range, but spot purchases and returning institutional demand have continued supporting the price after much of the short pressure cleared. Bitcoin (BTC) traded at about $77,535 at the latest check after reaching an intraday high near $79,200. The cryptocurrency was up almost 7% over 24 hours and about 23% over seven days, extending a rally that began below $65,000 on Aug. 19. Although squeeze-led advances often weaken once traders finish closing bearish positions, Bitfinex said the combination of ETF d...