Bitcoin stalls below $80K as short squeeze fades

Bitcoin traded near $77,000 on Monday, holding last week's explosive gains but remaining below the $80,000 mark. The cryptocurrency rose over 20% last week, reaching a three-month high of approximately $79,500 on Friday. The rally was driven by Treasury buybacks, a weaker dollar, ETF demand, regulatory optimism, and a historic short squeeze that liquidated over $4.3 billion in bearish positions. However, analysts say this forced buying fuel is now diminishing, leaving Bitcoin dependent on sustained institutional inflows and friendlier rate conditions to break higher. US spot Bitcoin ETFs attracted $1.9 billion in net inflows last week, the largest weekly total of 2026, led by BlackRock's IBIT. Analysts caution that clearing the $80,000 level requires conviction, with the Federal Reserve's stance on rates remaining a key obstacle.