$BTC Breaks $81K, Wipes $300M in Leveraged Tears

Bitcoin rose above $81,000 on Friday after clearing the $78,000 and $80,000 levels in a three-day recovery, brushing off a week defined by negative macro and regulatory headlines. The move was accompanied by roughly $300 million in leveraged crypto liquidations over four hours, as traders on the wrong side of the rally were forced out of their positions.

When $BTC pushed through $80,000, leveraged short strategies came under pressure as the market turned against bearish positioning. The rally unfolded against a backdrop lacking clear risk-asset tailwinds. On Wednesday, the Federal Reserve raised its target rate by 25 basis points to 3.75%-4.00%. Two days later, the Bank of Japan lifted its policy rate to 1.25%, the highest level in 31 years. The dollar index reached 100.48 on Friday, with Bitcoin moving through the $80,000 range even as higher borrowing costs and a stronger dollar weighed on broader market sentiment.

Crypto traders were also digesting the Senate vote on the Digital Asset Market Clarity Act. On Tuesday, cloture on the motion to proceed failed by 49 votes to 50, leaving the bill unable to advance at that stage. Bitcoin slipped following the setback before staging its recovery.

Analysts are watching the $83,000-$86,000 zone as the next area of interest, while $78,000 remains the nearest key support level. Bitcoin reclaimed both $78,000 and $80,000 this week despite the rate hikes, dollar strength, and CLARITY Act setback.