Bitcoin (BTC) Price Spikes Above $95k, Setting Up Short Squeeze

Bitcoin price spiked to above $95k on Friday, hitting a two-month high as cryptocurrencies rallied alongside stocks

Cryptocurrencies continued to rise on Friday, with Bitcoin price spiking above $95k to hit a two-month high as fresh sentiment around tariffs boosted risk assets.

Bitcoin (BTC) rose to highs of $95,184 on Friday, continuing a rally from the $80k lows hit last week. The world’s leading cryptocurrency was last up over 6% in the past 24 hours.

Bitcoin price is now up more than 120% year-to-date, outperforming major indices like the S&P 500 and Nasdaq 100, which are up around 80% and 90% respectively in 2025.

Cryptocurrencies have soared in recent months amid optimism around artificial intelligence (AI), a U.S. debt default being averted, and a potential pivot by the Federal Reserve from its interest rate hikes.

Crypto price, stock futures rise

Other major cryptocurrencies also rose sharply on Friday. Ethereum, the world’s second-largest cryptocurrency, rose as high as $3,400, while Cardano and Litecoin both surged over 10%.

Most major cryptocurrencies are now trading at levels last seen in early 2024, when Bitcoin price hit a record high of over $104k.

Crypto prices have also been supported by a broader risk-on mood in markets, with U.S. stock futures also indicating strong gains on Friday.

Both Dow futures and Nasdaq futures rose more than 1%, continuing gains seen on Thursday after President Biden and House Speaker Kevin McCarthy reached a framework to suspend the U.S. debt ceiling.

The move came after talks broke down on Thursday morning, sending stocks sharply lower. But a breakthrough in the afternoon saw stocks rebound.

Rising U.S. interest rates, and the potential for a default on U.S. debt, had pushed up risk aversion in recent months.

A failure to raise the debt ceiling would have major implications for the U.S. economy and global markets.

Any further updates on the negotiations, and the potential for tariffs to be reintroduced, will be closely watched by traders on Friday.

CryptoQuant: High-leverage longs flushed out

Meanwhile, a CryptoQuant analyst says that benchmark cryptocurrency Bitcoin (BTC) could be setting up for a short squeeze.

The move above $92K could be crucial, the analysts said as they looked at BTC data on Binance.

“High-leverage longs were flushed out between $82K and $88K, indicating that weak hands had been eliminated. Large short positions remain susceptible above $92,000, creating the possibility of a short squeeze.”

Why this matters

A short squeeze occurs when a sharp price increase forces short sellers to close their positions, driving further buying and amplifying the rally.

“Bitcoin has just surged above $95K for the first time in 2 months, leaving bearish traders kicking themselves for selling on tariff fears,” analysts at Santiment wrote.

With high-leverage longs already cleared out and short positions stacked above $92,000, Bitcoin is primed for a potential squeeze if it sustains strength above this critical level.

However, if Bitcoin fails to hold $92,000, it could face a correction toward $88,500 or lower, as bearish momentum could take over.

Binance data reveals thinner liquidity above current price levels, implying fewer sell orders to absorb buying pressure.

If Bitcoin decisively breaks above $92,000, the lack of substantial resistance could accelerate upward price movements, especially if short liquidations contribute to the rally.

This aligns with the potential for a squeeze, as thinner liquidity zones often result in more exaggerated price fluctuations.

Crypto, stocks rally

The heatmap indicates a notable concentration of short positions near the $100,000 level, highlighting a possible short squeeze scenario.

The psychological threshold remains a key target for bullish momentum.

In addition to gains across broader risk assets amid easing US-China trade tensions, other factors may also be influencing Bitcoin’s price movement.

ETF flows, the Federal Reserve’s policy shifts, with Trump saying he will not fire Jerome Powell, are also major points.

“It blows my mind that sophisticated investors really thought it was a good idea to sell American stocks and bitcoin because the President of the United States was implementing pro-America economic policies. Stocks and bitcoin both up since the close of Liberation Day,” Anthony Pompliano said.

However, IntotheBlock data shows over 94% of Bitcoin holders are in profit at current price levels.

Bitcoin ETFs recorded the highest net inflows since January this week. This interest caused Bitcoin's price to surpass $95k, placing over 94% of holders in profit pic.twitter.com/5HTZb81f7h

— IntoTheBlock (@