Bitcoin Rally Tests $75,000 Level Amid Massive Short Squeeze
By Timmy Shen, The Block | March 17, 2026, 12:12AM EDT
Bitcoin and other major cryptocurrencies extended an impressive rally late Monday, pushing Bitcoin prices sharply higher, fueled by a significant short squeeze and improving market sentiment.
At its peak, Bitcoin surged approximately 3.93%, reaching as high as $75,653 around 10:00 p.m. ET before settling near $74,300 several hours later. Ethereum also posted gains, climbing 3.28% to $2,315, while XRP rose 5% to $1.54, signaling broadly positive momentum across the crypto market.
According to Coinglass data tracking liquidations over the past 24 hours, the market experienced $609 million in total liquidations, with a striking $485.6 million coming from short positions. This massive unwinding of shorts was a key driver behind Bitcoin’s rapid price appreciation.
Short Squeeze Fuels the Rally, But Sustainability Questioned
Dominick John, an analyst at Zeus Research, offered insight into the dynamics behind the price action. He noted that the massive short liquidations created a strong squeeze effect, propelling Bitcoin higher in the near term. However, John cautioned against reading too much into the move as a start of a long-term rally.
“Squeeze-driven moves are typically short-lived without sustained real demand, likely fading from days to a couple of weeks,” he told The Block. This view suggests while the rally is powerful, investors should remain measured in expectations until stronger fundamental demand takes hold.
Improving Market Sentiment and Institutional Demand
Market sentiment showed signs of stabilization after a prolonged period of fear. The Crypto Fear & Greed Index climbed out of "extreme fear" to a reading of 28, classified as "fear," marking a shift toward more constructive investor mood late Monday.
According to Rick Maeda, a research associate at Presto Research, the upward price action seems to be driven largely by solid spot demand and positive macroeconomic factors. He highlighted renewed inflows into U.S. spot Bitcoin ETFs and continued corporate buying as significant contributors to the move higher.
Data from SoSoValue showed that U.S. spot Bitcoin ETFs recorded net inflows of $767.3 million last week, marking the third straight week of positive inflows. Spot Ethereum ETFs also saw healthy inflows totaling $160.8 million over the same period.
Maeda also pointed to easing geopolitical tensions and retreating inflation concerns—especially related to oil prices—which have helped foster a more stable risk environment. This environment has favored high-beta assets such as cryptocurrencies.
Jeff Ko, chief analyst at CoinEx, echoed that the market’s underlying demand is healthier with consistent dip-buying and ETF inflows supporting a more constructive backdrop. Similarly, Dominick John emphasized that both spot market flows and derivatives positioning are fueling the recent breakout.
Broader Market Context and Macro Developments
Equities markets appeared to stabilize alongside the crypto rebound. On Monday, the Dow Jones Industrial Average gained 0.83%, the S&P 500 rose 1.01%, and the Nasdaq Composite jumped 1.22%, as investors digested easing tensions related to the Iran conflict.
Asian markets mirrored this positive sentiment early Tuesday, with South Korea’s Kospi jumping 2.6%, Japan’s Nikkei 225 gaining 0.5%, and Hong Kong’s Hang Seng increasing 1%.
However, oil prices resumed upward momentum amid ongoing uncertainties in the Strait of Hormuz. Brent crude rose 2.9% to $103 per barrel, and WTI crude increased 2.7% to $96.03. U.S. President Donald Trump urged international cooperation to address shipping disruptions after Iran restricted traffic through the critical oil transit route, which carries about 20% of global supply.
Jeff Ko underscored that oil remains a critical transmission channel affecting crypto prices, noting, “Bitcoin is increasingly tied to the broader macro complex, including commodities, yields, and the U.S. dollar.”
Looking Ahead
Analysts widely agree that the next chapters of this crypto rally will depend heavily on whether institutional inflows persist and how macroeconomic risks evolve. Traders and investors are closely watching ETF flow data, oil price movements, and upcoming economic indicators — including U.S. producer price index figures and the Federal Reserve’s rate decision on March 18 — for guidance on future market directions.
Disclaimer: The Block is an independent media outlet providing news, research, and market data. Information herein is for informational purposes only and should not be considered financial, legal, or investment advice.
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