In the past 24 hours, the prices of Bitcoin and Ethereum surged sharply, leading to mass short position liquidations in the cryptocurrency markets. Investors betting against the price increases suffered significant losses.
Short Liquidations
According to CoinGlass, the total short liquidations reached $1.11 billion, affecting over 276,000 traders. Bitcoin shorts accounted for about $654 million of this total, while Ethereum shorts reached nearly $215 million. This indicates that many traders did not expect such a sharp price increase in the cryptocurrency market.
Bitcoin's New All-Time High
Bitcoin hit a new record above $118,000, establishing a new high after breaking above $112,000 the previous day. Ethereum also followed suit, rising past $3,000, which observers viewed as a significant market movement that triggered what some are calling a 'major short squeeze'.
Analyst Opinions
The cryptocurrency market capitalization rose by 6.39% in a single day, now sitting at $3.69 trillion based on data from CoinMarketCap. Crypto analyst Miles Deutscher noted on X, 'Bears in disbelief,' while trader Daan Crypto Trades called it a 'MASSIVE Short squeeze on BTC & ETH.' Earlier this week, some analysts expected Bitcoin's price to lose momentum after nearing the previous ATH. However, others, like Michael van de Poppe, posited that 'The inevitable breakout to an ATH on Bitcoin might even happen during the upcoming week.'
For now, the market holds steady and traders are closely watching to see if the rally continues or if further liquidations follow.
