Українська
Русский
English
Bitcoin’s Sharp Rise to $63,700 Triggers the Largest Short Liquidations Since Late April
Bitcoin’s recovery from last week’s lows crushed traders who had been betting against it.
According to CoinGlass, short sellers, who profit when prices fall, lost $504,000,000 in the 24 hours leading up to Monday morning, the largest daily figure since late April. By comparison, bullish bets generated only $151,000,000 in losses.
Total liquidations across the cryptocurrency sector reached around $655,000,000 and affected more than 104,000 traders. Bitcoin positions accounted for $315,000,000, while Ethereum positions accounted for $201,000,000. The largest forced closure was a $12,300,000 Bitcoin futures position on OKX.
Liquidation is the automatic closure by an exchange of a leveraged position that has moved too far against the trader.
This “squeeze” caps a volatile period for the world’s largest cryptocurrency. Bitcoin fell nearly 14% last week and briefly dropped below $60,000, driven by Strategy’s first Bitcoin sale since 2022, a downturn in artificial intelligence-related stocks and record outflows from spot Bitcoin exchange-traded funds.
At that point, many traders were opening short positions near the lows and were then caught in a trap when Bitcoin rebounded to a high of around $63,800 on Sunday.
On Monday, the rebound slowed somewhat. Renewed strikes between Iran and Israel pushed oil prices up by more than 3%, while Asian stock markets fell sharply, with South Korea’s KOSPI index down almost 7%. President Donald Trump urged Israel not to take further retaliatory action. Bitcoin slipped to around $62,900, still well above last week’s low.
On Monday morning, Bitcoin reached $63,700 before pulling back. Volatility is expected to remain elevated ahead of the release of US inflation data and a wave of major IPOs, including SpaceX.
