Bitcoin has once again broken past the $69,000 barrier, a feat not seen since the 2021 rally. This significant upward movement sparked a large-scale short squeeze in the derivatives market, leading to the liquidation of approximately $2.74 billion in short positions over the last 24 hours.
What Fueled the Market Liquidation Wave?
Total liquidations in the cryptocurrency realm have reached around $2.99 billion. Out of this, Bitcoin accounted for a staggering $1.42 billion, while Ethereum saw $1.13 billion in liquidations. Long positions experienced relatively minimal losses, maintaining about $255.09 million.
Investors betting against the market took the hardest hit from this liquidation wave. The rapid price surge highlighted the extreme risks associated with leveraged trading, especially when market dynamics change swiftly.
Ethereum Moves Under Scrutiny
The on-chain data platform Lookonchain reported that an investor’s substantial short position of 50,000 ETH, worth $106 million, was completely liquidated. Lookonchain is recognized for its keen monitoring of wallet movements across blockchain networks.
Lookonchain revealed that the pension-usdt.eth wallet, which had previously reaped $49 million in profits with 23 successful trades in a row, faced complete liquidation of its 50,000 ETH short position.
The financial setback from this action reached $23.9 million. This contrasts sharply with the wallet’s earlier success, having consistently profited in numerous prior transactions.
A Historic Day for Bitcoin Shorts?
Data from K33 Research shows a record-breaking day for Bitcoin futures, with short liquidations surpassing $1 billion within a single day for the first time. Vetle Lunde, leading researcher at the firm, points out that this recent surge has far outshined previous major short liquidation events.
Vetle Lunde notes the unprecedented surge, stating Bitcoin shorts exceeded $1 billion in liquidations in just one day.
- Past comparisons show May 2021 saw about $757 million in short liquidations.
- November 2025 had approximately $694 million in short liquidations.
- Recent activities significantly surpassed these previous records.
With Bitcoin’s latest rally, the cryptocurrency showed a robust rebound from the $63,000 support zone. Analyst The Martini Guy indicates that surpassing the levels of $64,000, $65,700, and $67,200 hints at changes in the short-term outlook. As Bitcoin is currently trading around $71,717, close attention is being paid to the $70,500 resistance. Crossing this threshold could pave the way to $71,500 and possibly the $72,000 range, while support at $67,200 remains a critical level. Preservation of this support could sustain the upward trend, whereas a breach might lead to deeper corrections.
