- Bitcoin surged more than 3% in 24 hours, exceeding $104,000 (highest since January 31st).
- The bearish short BTC position, nearly $400 million, was settled in 24 hours (highest since November).
- A significant short throttle suggests a further possible opposite as bear pressure is eased.
Bitcoin has experienced a strong upward surge in the last 24 hours, surpassing key psychological levels, fleeing many bearish traders, leading to substantial liquidation of short positions.
The rally was supported by positive macroeconomic news and continued its strong institutional interest in major cryptocurrencies.
Bitcoin (BTC) prices rose more than 3% within 24 hours, trading at around $102,500, exceeding $104,000 at one point. This is the highest level since January 31st.
This bullish momentum wasn’t limited to Bitcoin. The broader cryptocurrency market has also attracted a significant amount.
According to TradingView data, the total market capitalization of all cryptocurrencies except Bitcoin has skyrocketed at an impressive 10%, reaching a peak not seen since March 6th.
Two important catalysts appear to have fueled this sharp upward.
First, President Donald Trump announced that he has reached a comprehensive trade deal with the UK. This is a development that generally increases risk appetite in the global market.
Second, the cumulative inflows to US List Spot Bitcoin Exchange Trade Funds (ETFs) reportedly exceeded $40 billion, maintaining institutional demand for direct Bitcoin exposure and raising new growing records.
Bearish bets were destroyed in a short squeeze
This rapid and strong price rise has led to a significant “short slash” in which traders bet on the decline in Bitcoin prices were forced to go at a loss as the market opposed them.
Coinglas data shows that bearish BTC short positions worth around $400 million have been settled over the past 24 hours.
This represents the highest daily total in short settlements since at least November.
An unfavourable price movement causes the leveraged trader’s account balance to fall below the required margin level and prevent further losses, and positions will be liquidated or forced to close by exchange.
In contrast, a relatively modest $22 million bullish long position was wiped out over the same period.
Meaning of imbalance: Before?
The substantial imbalance between short and long liquidations provides insight into recent market positioning.
This indicates that leverage was severely distorted towards the bearish side. This means that many traders had anticipated or placed a price decline.
The rapid rewinding of these short positions could have exacerbated the upward price movement as traders were forced to buy Bitcoin to cover their losses.
Market analysts often view the key liquidation of such shorts as a potential bullish signal in the short term.
This suggests that a significant amount of sales pressure may be removed from the market and clear the path for further price increases as general emotional changes and buyers gain more control.
The combination of positive external catalysts and short throttle internal market dynamics could set a continuous upward momentum phase for Bitcoin and the wider crypto market.
