Crypto Short Liquidations Soar to $750M Amid ETH’s 20% Surge, Marking Largest Squeeze Since 2023
A massive crypto rally, primarily driven by ether’s (ETH) impressive 20% rise, triggered a record-breaking $750 million in short liquidations over the past 24 hours, marking the highest single-day total since 2023. According to CoinGlass, over 84% of the liquidations were attributed to short positions, as major altcoins surged 10%–20% in a matter of hours, starting late Thursday.
Ether led the charge with a 20% climb, breaking through the $2,000 mark for the first time since March. Meanwhile, Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) posted impressive gains, with DOGE and ADA seeing more than 10% increases. Binance Coin (BNB) and XRP also enjoyed a boost, rising at least 7%.
Short liquidations occur when traders’ leveraged positions are automatically closed by exchanges due to insufficient margin. This process leads to large-scale price swings, and such liquidations often serve as signals of market extremes—sometimes suggesting that a price reversal could be on the horizon, driven by an overreaction from traders.
The surge in crypto prices came alongside bitcoin’s rise above $100,000, which reignited market optimism. The rally also coincided with a positive shift in sentiment after news of a trade deal between the U.S. and the U.K. The total liquidations during this period rivaled those seen during the March surge when bitcoin reached $93,000, wiping out over $550 million in short positions in just one weekend.
This latest surge follows a similar pattern to a rally in April, where ETH and DOGE’s gains led to $500 million in short liquidations. However, this move surpasses that event, signaling a renewed risk appetite among investors and a crowded short position setup in the market.
Data from CoinGlass reveals that the largest losses were seen on Binance and OKX, which accounted for over $500 million in liquidations. ETH alone was responsible for $310 million of the total, while bitcoin-based futures accounted for $375 million in liquidations.
ETH’s surge comes after a period of range-bound price action, which saw waning institutional interest. However, Ethereum’s recent Pectra upgrade, which made significant protocol improvements, may have reignited investor confidence, contributing to the latest bullish momentum.
