Bitcoin continues to set new records, leading to mass liquidations of short positions in the cryptocurrency markets.
Bitcoin's Sharp Rise and Short Liquidations
On Thursday, Bitcoin, the largest cryptocurrency by market capitalization, reached new all-time highs, surpassing the $116,500 mark. This surge triggered over $1 billion in liquidations of short positions within a 24-hour period. According to CoinGlass, around $570 million of this figure was from Bitcoin shorts and nearly $207 million from Ether shorts.
Traders React to Liquidation
Market participants were caught off guard by the swift price movement. Crypto analyst Miles Deutscher posted on X, "Bears in disbelief," while trader Daan Crypto Trades described the move as a "MASSIVE Short squeeze on BTC & ETH." Commentator Velo highlighted the scale of the liquidations, noting, "Lots of emails are being sent."
Diverging Opinions Before the Breakout
Earlier in the week, analysts were divided on Bitcoin’s near-term potential to reach new highs. Bitfinex analysts noted a "lack of follow-through strength" for BTC as it hovered around $108,500. However, others, including MN Trading Capital founder Michael van de Poppe, expressed a more optimistic view, predicting that "the inevitable breakout to an ATH on Bitcoin might happen during the upcoming week."
The market is watching closely to see if Bitcoin can maintain its new highs or continue to rise. If Bitcoin retraces to Wednesday's level of $112,000, around $2.11 billion in long positions could be at risk of liquidation.
