The move points to renewed risk appetite in crypto markets, with the CLARITY Act linked in the source as a factor supporting bullish positioning.
Bitcoin’s advance triggered about $145 million in short liquidations, a squeeze that typically occurs when traders betting on lower prices are forced to buy back positions as the market rises. The source links the move to renewed momentum around the CLARITY Act, suggesting improving sentiment toward crypto-related risk assets. In market structure terms, short squeezes can amplify price gains because forced buying adds to upward momentum over a short period.