Bitcoin Surge: Massive Short Liquidations Triggered
Bitcoin’s recent surge to new all-time highs has delivered a significant blow to short-sellers, resulting in over $1 billion in crypto short positions being liquidated within a mere 24 hours. Data from CoinGlass reveals that this massive liquidation event impacted approximately 232,149 traders across the cryptocurrency market. This overwhelming liquidation underscores the volatility and rapid price movements inherent in digital assets, particularly when major price milestones are achieved.
Ethereum and Bitcoin Shorts
The brunt of these liquidations was borne by Bitcoin short positions, accounting for roughly $570 million in wiped-out bets. Ethereum (ETH) shorts also suffered substantially, with $206.93 million liquidated during the same period.
CoinGlass data specifically indicated that Bitcoin liquidations totaled $590.04 million over the 24 hours, with only a comparatively small $20.21 million attributed to long positions, highlighting the market’s decisive move upward and the heavy cost for those betting against it.
New Records and Market Capitalization Spike
The wave of liquidations occurred as Bitcoin clocked new record highs for two consecutive days, first reaching $112,000 on Wednesday, followed by a new peak of $116,500 on Thursday. Simultaneously, Ether surged to $2,990 on Thursday, reflecting the broad positive momentum. The entire crypto market capitalization reacted strongly, spiking by 4.4% over the past 24 hours to reach $3.63 trillion, according to CoinMarketCap data, signaling a robust rally across the digital asset landscape.
Industry Reaction: “Bears in Disbelief”
The rapid market shakeout prompted significant commentary from crypto analysts and traders. Miles Deutscher, a crypto analyst, succinctly captured the sentiment in an X post, declaring, “Bears in disbelief.” Similarly, crypto trader Daan Crypto Trades on X characterized the event as a “MASSIVE Short squeeze on BTC & ETH.” Echoing this sentiment, Velo noted the significant liquidation event, remarking that “Lots of emails are being sent,” alluding to the numerous margin calls and liquidation notifications received by traders.
Historical Context: Earlier Concerns and Liquidations
While significant, this recent liquidation event is not the largest in crypto history. A more substantial event occurred on February 3, with over $2.24 billion liquidated amidst growing concerns of a global trade war after President Donald Trump signed an executive order imposing import tariffs. Earlier this week, prior to the pump, some analysts had expressed skepticism about Bitcoin reaching new highs.
Bitfinex analysts, for example, noted a “lack of follow-through strength” as BTC struggled to break its previous all-time high, suggesting that “Bulls are hesitant or unable to push prices significantly higher without fresh catalysts or clearer macro signals.”
Trader Sentiment: Divided Before the Rally
Leading up to the latest rally, traders were notably divided on whether Bitcoin would manage to tap new highs. While Bitfinex analysts observed hesitation among bulls, other market participants held a more bullish outlook.
Michaël van de Poppe, founder of MN Trading Capital, had predicted on June 30 that “The inevitable breakout to an ATH on Bitcoin might even happen during the upcoming week,” a prediction that ultimately proved accurate. This split sentiment highlights the inherent unpredictability of the crypto market even among seasoned professionals.
Future Liquidations Loom
For now, many traders are betting on Bitcoin’s price remaining stable or continuing its upward trajectory. However, the market remains susceptible to significant volatility. Approximately $2.11 billion in long positions are currently at risk of liquidation should Bitcoin retrace to Wednesday’s price of $112,000.
This indicates that while the recent pump devastated short-sellers, a sudden downward movement could similarly impact long positions, underscoring the high-risk, high-reward nature of leveraged trading in the cryptocurrency market.
