Bitcoin and the broader cryptocurrency market extended their upward momentum on Tuesday morning, with the digital asset breaking through a key resistance level not seen in months. Within a 24-hour window, Bitcoin peaked at $81,270.5, surpassing the $81,000 threshold for the first time since May of this year.

At the time of writing, Bitcoin was trading at $80,970.8, marking a 4.59% gain over the past day. The rally was not confined to Bitcoin alone, as Ethereum climbed nearly 3% to approximately $2,533, while Solana surged 7% to $101.8 during the same period.

According to the latest weekly report from GSR, Bitcoin hit roughly $79,000 last week, delivering its strongest weekly performance of the year with a gain exceeding 20%. From Wednesday through Friday, total short liquidations across the market amounted to approximately $4.6 billion, underscoring the intensity of the squeeze on bearish traders.

Meanwhile, net inflows into US spot Bitcoin and Ethereum ETFs swung from negative $400 million the previous week to a positive $2.5 billion, marking the highest weekly figure of the year. GSR noted that the sustained ETF selling pressure observed over recent weeks has clearly dissipated, with fresh capital now favoring both BTC and ETH.

Coinglass data revealed that over the last 24 hours, a total of 94,000 traders were liquidated, with the cumulative liquidation value reaching $635 million. This wave of forced closures highlights the violent nature of the price action as leveraged positions were wiped out on both sides of the market.

Bernstein strategist Gautam Chhugani attributed the strong Bitcoin rally to the US Treasury's bond purchases, noting that Bitcoin has historically responded positively to liquidity expansion. Additionally, market participants pointed to President Donald Trump's recent meeting with cryptocurrency industry executives as a further catalyst boosting investor optimism.