🚨 $830 Million in Crypto Shorts Liquidated in 24 Hours as Bitcoin and Ethereum Rally 🚨
In the past 24 hours, the cryptocurrency market witnessed a massive short squeeze, with $830 million worth of short positions liquidated across major exchanges. This wave of forced closures came as Bitcoin surged past $100,000 and Ethereum topped $2,100, following news of a major US-UK trade agreement.
🔑 Key Highlights
🔹 Short Liquidations Dominate:
Out of nearly $1 billion in total liquidations, $834 million were short positions, marking one of the largest short squeezes of the year.
🔹 Market Catalysts:
The rally was fueled by Bitcoin and Ethereum’s sharp gains after the US and UK announced a trade deal, pushing the total crypto market cap to $3.3 trillion for the first time since early March.
🔹 Largest Single Liquidation:
The biggest position wiped out was a BTC/USDT trade on Binance, valued at $11.97 million.
🔹 Futures and Leverage:
Open interest in crypto derivatives remains high, with leverage amplifying the scale of liquidations as prices moved rapidly upward.
🔹 ETF and Macro Support:
US-listed Bitcoin ETFs saw $3.4 billion in inflows last week, while dovish signals from the Federal Reserve provided a supportive macro backdrop.
🔎 Why It Matters:
🔹 Volatility Reminder:
Aggressive short positioning in crypto can lead to sudden, large-scale liquidations when prices spike, driving even more volatility.
🔹 Market Sentiment Shift:
The short squeeze forced bearish traders to exit, potentially fueling further upward momentum as the market eyes new all-time highs.
🔹 Caution for Traders:
With open interest still elevated, the risk of rapid price swings remains high, especially near major milestones like Bitcoin’s $100,000 level.
The liquidation of $830 million in shorts underscores the risks of leveraged trading in crypto’s fast-moving markets. As Bitcoin flirts with six figures and Ethereum surges, traders should brace for continued volatility and manage risk accordingly.
https://www.fxstreet.com/cryptocurrencies/news/bitcoin-and-ethereum-short-squeeze-spark-1-billion-in-liquidations-following-us-uk-trade-agreement-202505090104