Woofun AI reports that Bitcoin surged past the $71,000 threshold, breaking a prolonged consolidation phase as market dynamics shifted following the passage of the Clarity Act by Donald Trump and increased activity on Hyperliquid.

The asset escaped a six-week sideways range, climbing above $71,000 to record an 11% gain despite a $62 billion market context where volatility had compressed to multi-year lows. Traders had systematically bet on the downside, creating a dense band of short liquidations that was triggered when bond market operations expanded buybacks to $4 billion. In less than an hour, $3 billion in short positions were forced to cover, accelerating the upward momentum.

Altcoin dynamics reflected this broader shift, with Ethereum, SOL, XRP, and DOGE seeing significant movement as open interest reached $131.25 billion and derivatives volume hit $23.4 billion. A 9.11% increase in activity was noted alongside funding rates for BTC at 0.0101% and ETH at 0.0103%, indicating leveraged long exposure. Per Woofun AI, these financial metrics highlight a structural rotation from bearish positioning to aggressive accumulation across major assets.

Market sentiment has pivoted sharply, with Bitcoin dominance climbing to 59.2% as capital flows concentrate on the leading asset. While the immediate technical breakout is clear, the sustained macroeconomic trend has not yet arrived to confirm long-term stability.