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3 Key Takeaways
- Historic Short Liquidation $1.01 billion in crypto shorts liquidated with Bitcoin accounting for $570 million as 232,149 traders were wiped out.
- Bitcoin Record High BTC surged to $$117,813.11 all-time high, marking the second consecutive record and triggering massive short squeeze.
- Market Momentum Crypto market cap jumped 4.4% to $3.63 trillion with Fear & Greed Index at 71 showing continued bullish sentiment.
Bitcoin short-sellers suffered devastating losses Thursday as the cryptocurrency surged to $117,813, triggering over $1 billion in liquidations across 232,149 traders. The massive short squeeze pushed crypto market capitalization up 4.4% to $3.63 trillion, leaving bears scrambling after betting against the rally.
Record Liquidations Hit Short Positions Hard
CoinGlass data reveals $1.01 billion in crypto short positions were liquidated within 24 hours, with Bitcoin accounting for $570 million and Ethereum contributing $206.93 million. Bitcoin liquidations totaled $590.04 million, with only $20.21 million being long positions.
The liquidation event coincided with Bitcoin’s second consecutive record high, following Wednesday’s $112,000 peak. Ethereum simultaneously rallied to $2,990, adding pressure on short-sellers across major cryptocurrencies.
This ranks among the largest liquidation events in recent months, though it falls short of February 3’s $2.24 billion liquidation amid trade war concerns following President Trump’s tariff executive order.
Market Sentiment Shifts to Extreme Greed
The Crypto Fear & Greed Index maintained a “Greed” score of 67 out of 100, down slightly from last week’s 73. Industry analysts expressed shock at the rapid price movement and subsequent liquidations.
“Bears in disbelief,” noted crypto analyst Miles Deutscher, while trader Daan Crypto Trades called it a “MASSIVE Short squeeze on BTC & ETH.” The sentiment reflects widespread surprise at Bitcoin’s ability to break through resistance levels that had previously capped gains.
Market participants had been divided on Bitcoin’s ability to reach new highs, with some analysts citing “lack of follow-through strength” as recently as Tuesday when BTC traded around $108,500.
Also Read: Bitcoin Set for Breakout as Open Interest and Institutional Buying Rise
Bulls vs Bears: Divided Predictions Proved Wrong
Bitfinex analysts had expressed skepticism Tuesday, stating bulls were “hesitant or unable to push prices significantly higher without fresh catalysts.” However, bullish voices like MN Trading Capital’s Michael van de Poppe predicted the inevitable breakout to new all-time highs.
The current rally validates bullish predictions while exposing the risks of shorting Bitcoin during strong uptrends. Approximately $2.11 billion in long positions now face liquidation risk if Bitcoin retraces to Wednesday’s $112,000 level.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
