Bitcoin Surges Toward $75,000: $600 Million Short Liquidations Drive Rally, ETF Inflows Emerge as Key Variable

Gate News reports that on March 17, Bitcoin tested the key level of $75,000 driven by short liquidations. After briefly reaching $75,653, it pulled back to around $74,300. In the past 24 hours, Bitcoin increased by approximately 4%, Ethereum rose 3.28% to $2,315, and XRP gained about 5% to $1.54, with major cryptocurrencies moving higher in sync.

On-chain and derivatives data show that this rally was accompanied by large-scale liquidations. Over the past 24 hours, the total crypto market liquidation amounted to about $609 million, with short positions accounting for as much as $485.6 million, serving as a key driver for the price increase. Zeus Research analyst Dominick John noted that such short-covering-driven rallies tend to be faster, but if sustained demand does not support them, their duration may only last a few days to weeks.

Sentiment indicators also show signs of recovery. The crypto market fear and greed index has risen to 28, moving away from the previous “extreme fear” zone, indicating improved risk appetite. However, it remains in the “fear” range, reflecting that market confidence has not fully returned.

From a capital structure perspective, spot demand and institutional inflows are additional supporting factors. Presto Research analyst Rick Maeda stated that Bitcoin approaching $76,000 is closely related to capital flows, including corporate buying and the continued attraction of spot ETFs. Data shows that US spot Bitcoin ETFs saw a net inflow of about $767 million last week, maintaining positive inflows for three consecutive weeks. Ethereum-related products also saw increased funding.

Analyst Jeff Ko believes that recent market behavior shows clear signs of dip buying, combined with ETF capital inflows, indicating a more robust demand structure than before. Additionally, Bitcoin’s breakout is closely related to derivatives market position adjustments, while Ethereum benefits from ETF capital warming, performing more strongly.

On the macro level, global market sentiment has eased. US stocks rebounded, and Asian markets also moved higher. However, rising energy prices pose potential pressure on the market. Both Brent and WTI crude oil recorded gains of over 2%, as markets continue to assess the impact of the Strait of Hormuz situation on global supply. US President Trump also called for international cooperation to address shipping risks.

Analysts point out that Bitcoin’s movement is becoming more closely linked to macro variables, including oil prices, the US dollar, and interest rate expectations. The future market direction will depend on the continued inflow of ETF funds and key data such as producer price index and Federal Reserve rate decisions.