Bitcoin’s recent price surge has caught traders off guard, triggering a massive liquidation of short positions.
Over the last 24 hours, Bitcoin’s price jumped by more than 3%, briefly reaching $104,000—its highest point since January 31. This sharp rally coincided with President Donald Trump’s announcement of a landmark trade deal with the U.K. and a record-setting $40 billion inflow into Bitcoin spot exchange-traded funds (ETFs).
As Bitcoin surged, the broader cryptocurrency market followed suit, with altcoins climbing by 10%, pushing the total market capitalization to $1.14 trillion, a level not seen since March 6, according to TradingView data.
This bullish momentum has led to a significant wave of liquidations in bearish short positions. Nearly $400 million worth of Bitcoin short positions were liquidated within a single day, marking the highest level of short liquidations since at least November. Additionally, $22 million in long positions were also closed out.
The sharp increase in short liquidations, alongside the overall market surge, indicates that the bearish sentiment was widespread, and with these positions being forced to close, Bitcoin could see even further price gains as momentum continues to build.
