Viewpoint: Bitcoin's surge past $78,000 last night was driven by short squeeze in contract markets, with $357 million in shorts liquidated within one hour.

According to BlockBeats, on April 18, CryptoQuant analyst @AxelAdlerJr stated that following the news involving the US and Iran last night, Bitcoin rebounded from $74,000 to $78,000, with this surge displaying all the classic characteristics of a short squeeze. At 21:00 alone, the market absorbed a peak of $357 million in short liquidations.

@AxelAdlerJr believes this rebound was not amplified by fresh demand, but was driven by forced closing of short positions. "This is important because a short squeeze can push the price up very rapidly—but by itself, it does not confirm sustainable spot demand."