Українська
Русский
English
Bitcoin Bulls Trigger $145 Million Short Squeeze as CLARITY Act Momentum Revives Risk Appetite
After several failed attempts to reclaim the $80,000 level, Bitcoin surged by more than $2,000 within four hours, reaching a high above $81,800 and moving toward the $82,000 level.
Key Takeaways
- On May 14, Bitcoin climbed above $82,000, recovering previous losses and increasing its market capitalization to $1.63 trillion.
- The rally triggered $236 million in liquidations, heavily impacting short sellers on Polymarket and major crypto exchanges.
- Trump’s summit with China may help ease inflationary pressure, although analysts warn that oil markets are unlikely to fully recover before 2027.
Bitcoin Rebounds After Volatile Trading Session
On May 14, Bitcoin sharply reversed course, recovering losses accumulated over the previous 48 hours after jumping approximately $2,000 during four highly volatile hours.
Market data showed that throughout late May 13 and early May 14, Bitcoin struggled to break above the $80,000 level. However, shortly after 8:00 a.m. EDT, the cryptocurrency rallied aggressively, peaking slightly above $82,000.
At the time of writing around 1:00 p.m. EDT, Bitcoin was trading near $81,500 and appeared poised to retest the $82,000 level.
The rally pushed Bitcoin up 3.5% over 24 hours and lifted its market capitalization to $1.63 trillion, helping the overall cryptocurrency market capitalization approach $2.8 trillion.
Massive Short Liquidations Hit the Market
As a result of the sudden rally, approximately $70.5 million in short positions were liquidated over the past 24 hours, while long liquidations totaled around $14 million.
Overall, leveraged crypto positions worth $236 million were liquidated across the market, with short positions accounting for roughly $145 million.
Inflation and Geopolitics Remain Key Drivers
Bitcoin’s recovery, which was also reflected across Wall Street sentiment, came only hours after markets reacted negatively to the latest U.S. inflation data.
Although some inflationary pressure had been anticipated, the scale of the increase — especially in the Producer Price Index (PPI) — suggested that the Middle East conflict and the closure of the Strait of Hormuz are impacting the U.S. economy more heavily than previously expected.
However, headlines surrounding Donald Trump’s long-anticipated visit to China quickly shifted market sentiment.
Many investors hope the summit will help the two countries resolve unresolved disputes and reduce the scale of costly tariff conflicts.
Some market participants are also optimistic that a positive diplomatic outcome could encourage China to persuade Iran to reopen the Strait of Hormuz.
Oil Market Risks Remain Elevated
Despite hopes for de-escalation, analysts warn that the volume of oil lost due to the Strait of Hormuz closure means markets are unlikely to fully normalize before 2027 — even if an agreement is reached immediately.
This suggests that oil prices may remain elevated for an extended period. U.S. senators have warned that such a scenario could deliver a severe blow to American businesses and households.
CLARITY Act Revives Market Risk Appetite
Optimism surrounding the U.S.–China summit, combined with the advancement of the CLARITY Act through the U.S. Senate Banking Committee, helped reignite Bitcoin’s rally.
As a result, Bitcoin has climbed from just above $66,000 in early April to approximately $82,000 by mid-May.
On Polymarket, the probability of Bitcoin reaching $85,000 during May increased to 56%, rising by 5 percentage points.
Nevertheless, some analysts warn that if U.S. inflation data and energy prices continue to rise, markets may begin repricing the broader liquidity cycle of the Federal Reserve, potentially leading to increased cryptocurrency volatility and elevated liquidation risks.
