Bitcoin Rally: Over $1 Billion in Shorts Liquidated
Bitcoin’s explosive rally has forced the closure of over $1 billion in short positions within 24 hours, marking one of the most intense short squeezes in crypto history. According to CoinGlass, this liquidation wave affected approximately 232,149 traders, shaking bearish sentiment across the market. Bitcoin’s price surge demonstrates how quickly market momentum can flip, especially during moments of record-breaking volatility.
Record-Setting Prices: Bitcoin and Ethereum Break Out
Bitcoin reached unprecedented levels, climbing from $112,000 on Wednesday to an intraday peak of $116,500 by Thursday afternoon. Ethereum followed suit, touching $2,990, further fueling bullish sentiment across the board. This synchronized rally propelled the entire crypto market to a 4.4% gain, lifting its total capitalization to $3.63 trillion, according to CoinMarketCap. The rapid rise signaled renewed investor confidence across both flagship tokens and altcoins.
Market Reaction: Analysts Stunned by Speed
The crypto community reacted swiftly, with prominent voices weighing in on the unexpected short squeeze. Crypto analyst Miles Deutscher summed up the sentiment on X with, “Bears in disbelief.” Daan Crypto Trades called it a “MASSIVE short squeeze on BTC & ETH,” while Velo noted the flurry of liquidation alerts, saying, “Lots of emails are being sent.” The consensus: this was a brutal moment for those betting against the market.
Liquidation Breakdown: Bitcoin and Ether Hit Bears Hard
Bitcoin short positions bore the brunt of the damage, with over $590 million in forced closures. Ether short liquidations weren’t far behind at $206.93 million.
By contrast, long positions were minimally affected—only $20.21 million in long liquidations occurred—highlighting how sharply sentiment had shifted in favor of bulls. The dramatic imbalance reflects the magnitude of the price move and the dominance of long buyers during the breakout.
Historical Liquidation Events: How This Compares
Despite the severity of this week’s short squeeze, it wasn’t the largest on record. A previous liquidation storm on February 3, 2025, resulted in $2.24 billion in liquidations following geopolitical tensions and import tariff announcements by former President Donald Trump. Compared to that macro-triggered event, this week’s move was more technical and sentiment-driven, but still packed a punch that rippled across exchanges.
Bitcoin Sentiment: Traders Split Ahead of the Breakout
Leading up to the breakout, market sentiment was divided. Analysts at Bitfinex noted weak momentum and hesitation among bulls to push past previous highs. In contrast, Michaël van de Poppe, founder of MN Trading Capital, predicted a breakout was imminent, stating on June 30 that an all-time high could be reached within the week. His prediction proved accurate, showcasing the mixed expectations that often precede large market movements.
Future Risks: Long Positions Now at Stake
Even as Bitcoin rides high, market risks haven’t vanished. If BTC drops back to $112,000, nearly $2.11 billion in long positions could face liquidation. The thin margin between current prices and liquidation levels underlines the volatility inherent in leveraged trading. A sharp retracement could reverse recent gains quickly, turning today’s winners into tomorrow’s casualties.
Crypto Volatility: High Risk, High Reward
The events of this week serve as a vivid reminder of how quickly tides can turn in the crypto market. With massive liquidations, record-setting highs, and renewed bullish sentiment, Bitcoin is once again proving its capacity for dramatic price action.
However, the looming threat of volatility—especially among leveraged positions—means traders must remain cautious. For now, the bulls are in charge, but as history shows, crypto markets are always one shock away from a reversal.
