Bears Wiped Out as BTC and ETH Stage Squeeze-Led Rally

This week's price action reads like a textbook squeeze. Bitcoin and Ether bears were caught offside as Treasury intervention, favorable regulatory developments, and a historic wave of short covering converged in a matter of days, producing the sector's strongest rally in months.

The move wasn't confined to majors. Altcoin volatility spiked in parallel, with Zcash surging 48% to trade above $800, briefly topping its January 2018 peak, as futures volume swelled into the billions on ETF speculation.

For traders, the takeaway is positioning risk. When sentiment gets this one-sided, even modest catalysts can trigger outsized reversals. The current setup suggests volatility is likely to stay elevated as the market digests the speed of the reversal.