Crypto
- Bitcoin surged over 3% in 24 hours, topping $104,000 (highest since Jan 31).
- Nearly $400 million in bearish BTC short positions were liquidated in 24 hours (highest since Nov).
- The significant short squeeze suggests potential for further upside as bearish pressure eases.
Bitcoin experienced a powerful upward surge in the last 24 hours, decisively breaking above key psychological levels and catching many bearish traders off guard, leading to substantial liquidations of short positions.
The rally was underpinned by positive macroeconomic news and continued strong institutional interest in the leading cryptocurrency.
The price of Bitcoin (BTC) climbed over 3% within a 24-hour period, trading around $102,500 and at one point surpassing the $104,000 mark – its highest level since January 31.
This bullish momentum was not confined to Bitcoin; the broader cryptocurrency market also rallied significantly.
The total market capitalization of all cryptocurrencies, excluding Bitcoin, surged by an impressive 10% to reach $1.14 trillion, a peak not seen since March 6, according to data from TradingView.
Two key catalysts appear to have fueled this sharp upswing.
Firstly, President Donald Trump announced a comprehensive trade deal had been reached with the United Kingdom, a development that generally boosts risk appetite in global markets.
Secondly, cumulative inflows into US-listed spot Bitcoin exchange-traded funds (ETFs) reportedly hit a new record high, surpassing $40 billion, signaling sustained and growing institutional demand for direct Bitcoin exposure.
Crypto Bearish bets decimated in short squeeze
This rapid and strong price appreciation triggered a significant “short squeeze,” where traders who had bet on Bitcoin’s price falling were forced to close their positions at a loss as the market moved against them.
According to data from Coinglass, nearly $400 million worth of bearish BTC short positions were liquidated over the past 24 hours.
This represents the highest single-day total for short liquidations since at least November.
A position is liquidated, or forcibly closed by an exchange, when adverse price movements cause a leveraged trader’s account balance to fall below the required margin level, preventing further losses.
In contrast, a relatively modest $22 million in bullish long positions were wiped out during the same period.
Crypto Implications of the imbalance: more upside ahead?
The substantial imbalance between short and long liquidations provides a telli
