Bitcoin’s $123k rally triggers $623m short squeeze in 24 hours

The crypto market is continuing its parabolic rally, and short sellers are paying the price. According to Coinglass data, the industry has seen a whopping $748.3 million in total liquidations over the past 24 hours, wiping out more than 130,000 traders. 

Short positions took the biggest hit, with roughly $623.3 million wiped out in under a day. The bulk of the pain came from Bitcoin shorts, which accounted for $475 million in liquidations as the market giant powered through the $120,000 mark. 

Ethereum wasn’t spared either.  Bearish bets against ETH lost around $52.7 million, while long positions gave up another $26.3 million. In total, ETH liquidations crossed $90 million as the asset reclaimed the $3,000 level. Coinglass’ data shows that the largest single liquidation order happened on Binance, valued at $98.10M.

The latest wave of liquidations adds to an already brutal week for short traders. Just days ago, the market saw over $1 billion in short liquidations, marking the largest single-day wipeout in four years. The trend comes as Bitcoin continues to ride positive market momentum to fresh highs, strengthening bullish sentiment.

Earlier today, the largest crypto asset briefly hit $123,000, fueling the uptrend it commenced earlier in the week. The rally is not isolated and comes as broader positive shifts point to the potential of a sustained rally, from rising institutional flows to improving market confidence.

Commenting on the momentum, Kraken Global economist Thomas Perfumo shared with crypto.news that Bitcoin’s breakout of the months-long $110,000 range suggests that the asset is entering a new price discovery territory. He added that steady inflows into spot Bitcoin ETFs and strength in U.S. equities are reinforcing the current risk-on environment, creating a strong backdrop for the broader asset class.

Other analysts are pointing to key technical triggers. Nicolai Søndergaard, research analyst at Nansen, noted that Bitcoin recently broke through major liquidation levels and held above them, adding that this, combined with improving regulatory climate and rising corporate interest, is creating more room for upside.

Bitcoin is now up 12% over the past seven days and more than 100% year-to-date. With the market holding strong above $120,000, pressure on short sellers may not be over yet.