Bitcoin (BTC) has surged past the critical $69,000 threshold and is fiercely testing the $70,000 resistance level today, fueled by a perfect storm of macroeconomic optimism following President Trump’s State of the Union address and a massive resurgence in institutional demand. The bellwether cryptocurrency has staged a powerful recovery, triggering over $570 million in short-squeeze liquidations as U.S. Spot Bitcoin ETFs recorded a staggering $506 million in single-day inflows—effectively ending a weeks-long period of stagnation.
Trump’s State of the Union Ignites 'Risk-On' Frenzy
While President Trump did not explicitly mention cryptocurrency in his record-breaking State of the Union address on Tuesday night, his bullish commentary on the "roaring" American economy sent a clear signal to global markets. By highlighting the 53 all-time highs in the stock market and emphasizing a pro-growth agenda, the President reignited a "risk-on" environment that has spilled over directly into digital assets.
Market analysts note that investors are interpreting Trump’s emphasis on low inflation and strong capital investment as a green light for speculative assets. "The silence on crypto was deafening to some, but the macro message was loud and clear," said a senior analyst at Orbit Markets. "Policy continuity and economic strength are driving capital back into high-beta assets like Bitcoin." Following the speech, Bitcoin climbed over 9% intraday, reclaiming levels not seen since early February.
Record Bitcoin ETF Inflows Break 5-Week Slump
Institutional investors have returned to the table with force. After five consecutive weeks of outflows, U.S. Spot Bitcoin ETFs saw a massive reversal, logging over $506 million in net inflows in a single session. This influx marks the highest daily volume for 2026, signaling that smart money is positioning for a sustained recovery.
BlackRock Leads the Charge
BlackRock’s iShares Bitcoin Trust (IBIT) led the pack, absorbing the lion's share of the capital, followed by steady inflows into Fidelity’s FBTC. This renewed institutional appetite comes as a sharp contrast to the bearish sentiment that plagued the market earlier this month. "We are seeing a 'buy the dip' mentality from institutional players who view the $60,000 range as a value zone relative to the October peak of $126,000," noted Eric Balchunas, Senior ETF Analyst at Bloomberg.
Crypto Short Squeeze Triggers $570 Million in Liquidations
The swiftness of the rally caught bearish traders off guard, triggering a cascade of liquidations. Data from Coinglass reveals that over $570 million in leveraged short positions were wiped out in the last 24 hours as Bitcoin blasted through resistance at $65,000 and $68,000. This crypto short squeeze has added rocket fuel to the price action, forcing short-sellers to buy back coins to cover their losses, further driving up demand.
The derivatives market is now showing signs of a sentiment flip, with funding rates turning positive again. The aggressive repricing suggests that the market had become overly hedged to the downside, leaving it vulnerable to this exact kind of violent upside reversion.
Bitcoin $70k Resistance: The Key to a Sustained Recovery
All eyes are now locked on the $70,000 psychological and technical barrier. Bitcoin is currently trading just shy of this level, a price point that has flipped from support to resistance during the correction from the 2025 highs. Technical indicators, including the daily Ichimoku cloud and the "cup and handle" pattern forming on shorter timeframes, suggest that a decisive close above $70,800 could open the floodgates for a run toward $78,000.
However, caution remains. While the cryptocurrency market recovery is underway, volume at the $70,000 level is thinning. A rejection here could see BTC consolidate back toward $66,000 before gathering enough momentum for a breakout. Alongside Bitcoin, altcoins like Ethereum and Solana have also posted double-digit gains, further confirming the breadth of the market's recovery.
As the market digests the implications of Trump’s economic roadmap and the return of ETF liquidity, the next 48 hours will be crucial. If Bitcoin can secure a foothold above $70,000, the narrative will definitively shift from correction to a renewed bull run.
