The sharp increases in Bitcoin and Ethereum prices have caused a massive liquidation in short positions in the past 24 hours. While market optimism is at its peak, traders betting against the market faced huge losses as prices broke through key levels.
According to CoinGlass , short traders saw $1.11 billion in combined liquidations, affecting more than 276,000 traders. Bitcoin (BTC) shorts made up about $654 million of the total, while Ether (ETH) shorts reached nearly $215 million. This indicates that short traders didn’t expect the surge in price across crypto markets to create new highs.
Liquidation Heatmap, Source: CoinGlass
Bitcoin hit a new all-time high above $118K today, setting a new record after a breakout above $112,000 the day before. Ether followed closely, rising past $3,000. The sharp move upwards surprised many in the market and triggered what some called a major short squeeze.
Crypto market cap rose by 6.39% in one day, now sitting at $3.69 trillion, based on data from CoinMarketCap . Crypto analyst Miles Deutscher posted on X, “Bears in disbelief,” while trader Daan Crypto Trades called it a “MASSIVE Short squeeze on BTC & ETH.”
Earlier this week, some analysts expected the Bitcoin price to lose buy momentum and reverse after nearing the previous ATH. On July 8, Bitfinex analysts said traders were showing “a lack of follow-through strength,” with bulls unable to move prices higher without clear signals or strong news.
Others had a more positive view. On June 30, Michael van de Poppe, founder of MN Trading Capital, said, “The inevitable breakout to an ATH on Bitcoin might even happen during the upcoming week.”
Now that Bitcoin has reached a new ATH, some traders are staying cautious as Bitcoin’s pull back below current levels would lead it to drop back to $112,000, which would put over $2.1 billion in long positions at risk.
For now, the market is holding steady. And traders are watching closely to see if the rally continues or if more liquidations follow.
