Bitcoin News Today: Bitcoin's Short-Squeeze Surge: $319M in Liquidations Fuel Self-Reinforcing Bull Run

Bitcoin surged past $112,000 on heavy volume on Sunday, with derivatives data revealing a sharp skew in liquidations favoring short positions. The largest single liquidation—a $19.04 million BTC-USD order on Hyperliquid—highlighted the vulnerability of bearish bets as the market navigated a volatile 24-hour period. Meanwhile, traders are parsing U.S.-China trade consultations ahead of the FOMC meeting, with a potential Trump-Xi summit on Oct. 30 adding to the geopolitical backdrop, according to a CoinDesk report.

The cryptocurrency's price climbed to $114,501 by 23:35 UTC on Oct. 26, breaking through the $112,000 threshold amid a 318% spike in trading volume at 09:00 UTC. CoinGlass data showed $393.74 million in total liquidations over the past 24 hours, with short positions accounting for $319.18 million of that total. This imbalance—where shorts were forced to exit en masse—typically reinforces upward momentum once key resistance levels are breached.

Hyperliquid, a derivatives platform, became a focal point as the largest liquidation occurred there. The top BTC short position on the platform, held by a whale, now faces an unrealized loss of over $5.52 million. This position is perilously close to liquidation if Bitcoin continues its upward trajectory, with a trigger price of $120,800. Analysts note that such large-scale liquidations can create a self-reinforcing cycle, as forced exits push prices higher and prompt further short-covering.

U.S.-China trade dynamics added another layer of complexity. Between 12:29 and 12:36 UTC, the Chinese Embassy in the U.S. posted updates on X detailing "candid, in-depth and constructive" consultations in Kuala Lumpur. Discussions included potential extensions of tariff suspensions, cooperation on fentanyl-related enforcement, and agricultural trade. Vice Premier He Lifeng emphasized the importance of stable U.S.-China trade, stating that dialogue on "equal footing" would help both economies.

Technical analysis from CoinDesk Research highlighted Bitcoin's struggle to maintain gains above $113,500, with price consolidating into a narrow range near $113,550–$113,720. While the $115,000–$116,000 level remains a critical resistance zone, the recent liquidation of short positions suggests a bullish bias in the near term. However, traders remain cautious ahead of the FOMC meeting, which could introduce fresh volatility.