Community Trust ScoreVerified
Bitcoin continues to make headlines as it smashes past previous highs, triggering a massive wave of liquidations across the crypto market. In just 24 hours, more than $1 billion worth of short positions were wiped out, shocking bearish traders and reinforcing bullish sentiment.
Bitcoin Rally Triggers Major Short Squeeze
On Thursday, Bitcoin surged to a new all-time high of $116,500, following a strong rally from $112,000 the day before. This price movement caught short-sellers off guard. According to data from CoinGlass, around $1.01 billion in crypto short positions were liquidated in a single day. Of that, $570 million came from Bitcoin shorts and another $206 million from Ether positions.
In total, 232,149 traders were affected by this wave of forced liquidations. For those unfamiliar, a short position is a bet that an asset’s price will fall. When the price instead rises sharply, traders in short positions are forced to buy back at a loss, often triggering even more price increases—a phenomenon known as a short squeeze.
Ethereum and Other Cryptos Join the Rally
Bitcoin wasn’t the only asset climbing. Ethereum (ETH) hit a local high of $2,990 before stabilizing slightly above $3,000. Other major cryptocurrencies also posted gains, pushing the total crypto market capitalization to $3.63 trillion, up 4.4% in 24 hours.
These moves reflect growing investor confidence, fueled by macroeconomic uncertainty, fiat currency weakness, and continued interest in crypto as a hedge against inflation and central bank policies.
Bears in Disbelief
The market reaction has left bearish traders reeling. Crypto analyst Miles Deutscher commented on X, formerly Twitter, saying, “Bears in disbelief.” Other analysts echoed his sentiment, pointing out that many traders were expecting a pullback instead of a breakout.
Popular trader Daan Crypto Trades described it as a “massive short squeeze on BTC and ETH,” indicating that leveraged positions were overly tilted to the downside, leaving traders exposed to sudden upward volatility.
Meanwhile, trader Velo pointed out the emotional toll of the liquidation, stating, “Lots of emails are being sent,” suggesting that many traders were receiving margin call or liquidation notifications.
Bitcoin’s Rise Coincides With Dollar Weakness
Bitcoin’s rally is also being linked to broader macroeconomic trends. The U.S. Dollar Index has dropped nearly 11% in the first half of 2025—the worst start to a year since 1973. A weaker dollar often benefits alternative assets like gold and Bitcoin, as investors look for more stable value stores.
This dollar decline is happening despite hawkish signals from the Federal Reserve, which recently indicated that interest rates would stay high through 2025. Additionally, the U.S. government’s decision to raise the debt ceiling by $5 trillion has contributed to fears about long-term fiscal stability. These economic concerns have made Bitcoin increasingly attractive as a hedge.
Market Sentiment Shifts to Greed
The Crypto Fear & Greed Index remains in the “Greed” zone, registering a score of 71 out of 100—a strong indicator that investors are optimistic and willing to take more risks. Though slightly lower than last week’s score of 73, the number still reflects bullish momentum across the market.
Bitcoin’s recent surge confirms predictions from analysts like Michael van de Poppe, who earlier this month stated that an “inevitable breakout to an all-time high” was likely. That prediction has now materialized, with Bitcoin not just reaching but surpassing the $112K level.
What’s Next for Bitcoin?
As Bitcoin continues its upward trend, traders are watching for signs of either continued growth or a potential pullback. Analysts warn that if Bitcoin drops back to the $112,000 range, $2.1 billion in long positions could be at risk of liquidation. However, for now, the momentum appears to favor further gains.
The rally is being supported not only by retail excitement but also by institutional participation and spot ETF flows. With major players entering the market and macroeconomic conditions pushing investors toward alternative assets, Bitcoin may be in the early stages of a sustained bull run.
Conclusion
Thursday’s $1 billion liquidation event marks one of the largest shakeouts of short positions in recent memory. As Bitcoin climbs past $116,000 and Ethereum tops $3,000, the crypto market is experiencing a major shift in sentiment. While bears are being caught off guard, bulls are riding high on renewed optimism and strong technical momentum.
With macroeconomic pressures mounting and more investors turning to digital assets, the question now is not if Bitcoin will go higher—but how high it can go in this cycle.
