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Bitcoin (BTC) surged sharply over the past 24 hours, reclaiming the $116,000 mark and triggering widespread liquidations across derivatives exchanges. The rebound came after a brief period of consolidation, with traders betting against the recovery now facing significant losses.
According to market data, Bitcoin climbed from the $112,000 region to briefly touch $116,000 before a slight pullback to around $115,400. This rebound represents a roughly 4% gain on the weekly chart, reflecting renewed buying pressure and improved market sentiment.
Ethereum (ETH) followed a similar pattern, climbing to $4,250 before stabilizing near $4,160 — up 3.4% for the week. Other major altcoins mirrored the trend, with most recording moderate gains except for Tron (TRX), which dipped more than 7%.
$467 Million in Crypto Positions Wiped Out
The sudden upward movement across the crypto market sparked one of the largest short squeezes in recent weeks. Data from CoinGlass shows that over the past 24 hours, approximately $467 million worth of cryptocurrency derivatives positions have been liquidated.
Liquidations occur when leveraged positions are forcibly closed due to insufficient margin, typically during sharp price swings. With the market’s latest move being predominantly bullish, the majority of these liquidations were on short positions — traders who had bet on prices falling.
Of the total amount liquidated, $358 million (76.6%) came from short positions, highlighting how heavily the market had leaned bearish before the rebound.
Bitcoin and Ethereum Lead the Short Squeeze
Bitcoin accounted for the largest portion of the liquidations, with $177 million worth of BTC contracts wiped out in the past day. Ethereum followed closely with $130 million in liquidations.
Among altcoins, Solana (SOL) saw the third-largest flush, with $34 million in short contracts closed. Other assets including XRP, Dogecoin, and Avalanche also witnessed notable liquidation spikes, reflecting the breadth of the market’s sudden bullish turn.
This wave of liquidations underscores how leveraged short traders were caught off guard by Bitcoin’s resilience above key support zones. The cascade of forced closures likely added momentum to BTC’s upward move, accelerating its climb toward $116,000.
ETF Inflows Reinforce Bullish Sentiment
Beyond liquidations, institutional demand continues to support Bitcoin’s price action. Spot Bitcoin exchange-traded funds (ETFs) have seen a resurgence of inflows over the past month, suggesting renewed investor confidence.
According to data shared by CryptoQuant analyst Maartunn, Bitcoin ETFs recorded $4.7 billion in net inflows over the last 30 days. These consistent inflows have provided steady demand, helping offset earlier market weakness.
Ethereum ETFs, which received regulatory approval in mid-2024, also posted inflows of $983 million during the same period — a positive sign for broader market adoption, though still far behind Bitcoin’s scale.
Spot ETFs allow investors to gain exposure to digital assets without directly holding them, offering a regulated gateway to institutional participation. Their growing inflows indicate that professional investors continue to view Bitcoin as a strategic asset, even amid short-term volatility.
Derivatives Data Points to Market Reset
The large-scale liquidation event effectively resets leveraged positions in the market, reducing downside pressure and paving the way for potential stabilization. Historically, such events often precede a short-term recovery phase as open interest declines and funding rates normalize.
With Bitcoin maintaining levels above $115,000, analysts expect the market to consolidate before attempting another push higher. However, traders remain cautious as the asset faces resistance around $116,500–$117,000, levels that have repeatedly capped rallies over the past week.
Should BTC sustain its position above the $114,000–$113,500 support range, the bullish structure may strengthen further, potentially opening the door for a move toward $118,000 or even $120,000.
Outlook: Momentum Builds for Next Leg Higher
The short squeeze and growing ETF inflows signal that Bitcoin’s underlying demand remains intact. The forced closure of nearly $360 million in shorts has rebalanced market sentiment, giving bulls a temporary upper hand.
Still, traders are likely to remain alert to potential volatility, especially with macroeconomic events such as the upcoming Federal Reserve rate decision on the horizon. A dovish stance from the Fed could add further momentum to Bitcoin’s ongoing recovery.
For now, Bitcoin’s ability to sustain above $115,000 will be critical. As long as buyers defend this level, the broader outlook remains constructive — with the potential for another upward leg once key resistance levels are cleared.
