itcoin had pulled back under $49,000 the previous day but sharply rebounded, surpassing not only $50,000 but climbing further to new yearly highs above $51,500. Only Cardano posted stronger gains over the past 24 hours as Bitcoin reached its highest point since late 2022.
Futures Liquidation Tops $221 Million
Data from CoinGlass revealed over $221 million in crypto futures contracts were liquidated during this period. Short holders accounted for roughly 60% or around $138 million of these losses. As Bitcoin rose, long and short positions were caught off guard, though shorts comprised the majority.
Short Squeeze Triggers Cascading Liquidations
Events with numerous liquidations occurring simultaneously, known as "squeezes", saw this classified as a short squeeze. As prices rose, short positions faced margin calls triggering cascading selling pressure. This amplification likely contributed to Bitcoin's sharp upward move.
BTC Tops Liquidated Symbols
Unsurprisingly, Bitcoin led liquidated symbols with $92 million in losses. Ethereum followed with $51 million. While speculation continued as open interest climbed, the volatile price action led many traders on the futures side to face liquidation.
