On August 13, 2025, a significant event occurred in the crypto market as a $10 million BTC short position was liquidated on Bybit while Bitcoin surged past $120,000.
Record Liquidation on Bybit
A $10 million BTC/USD short position was liquidated on Bybit as Bitcoin surged past $120,000. This event contributed to a record global liquidation total of $5.01 billion on that day, with over 60% of these liquidations attributable to the sharp rise in Bitcoin prices across various exchanges.
Surge in Institutional Demand
Institutional interest in Bitcoin has also played a significant role, highlighted by BlackRock’s ETF recording $359 million in inflows, reflecting growing interest from institutional investors. A purchase of $403 million in Bitcoin-backed ETF shares was noted on August 8, emphasizing Bitcoin's rising importance as an asset.
Regulatory Scrutiny on Leverage Trading
In response to the increase in institutional activity, regulatory scrutiny over leverage trading is expected to intensify. Bybit's CEO, Ben Zhou, emphasized the importance of transparency in liquidation reporting, stating that the exchange would publish all liquidation data, potentially prompting industry-wide changes to mitigate risks amid rising macro asset trading interests.
August 13, 2025, marked a significant day in the cryptocurrency market as liquidations reached record levels. The increasing interest from institutional investors alongside rising cryptocurrency prices has attracted regulatory attention, potentially leading to changes in trading practices on exchanges.
