Bitcoin News Today: Leveraged Shorts Crumble as Bitcoin's Surge Wipes $1.1B

Bitcoin's recent price movements have triggered significant short liquidation events on centralized exchanges (CEXs), with data highlighting the volatility and leverage dynamics in the crypto market. On September 5, 2025, Bitcoin (BTC) surged above $118,000, wiping out over $1.1 billion in short positions-marking the largest single-day short liquidation event on record Bitcoin Tops $118,000, Triggers Record $1.1 Billion in Short Liquidations^[1]. This followed a two-day rally that pushed BTC to an all-time high, with retail sentiment shifting sharply from bearish to extremely bullish on platforms like Stocktwits. The liquidation volume was driven by a concentrated cluster of leveraged short positions, which were caught off guard by the rapid price ascent.

Coinglass data further underscores the sensitivity of the market to price thresholds. If Bitcoin's price rebounds above $118,000, the total short liquidation volume across major CEXs could reach $823 million, according to projections from Coinglass Bitcoin Liquidation Intensity Could Surge to $823 Million if Price Breaks $118,000^[2]. This aligns with historical patterns, such as the $460 million in daily short liquidations recorded in May 2025. The potential for large-scale liquidations increases as the price approaches key resistance levels, with Coinglass also warning of $1.749 billion in short positions at risk if Bitcoin tops $115,000 . These figures reflect the growing concentration of leveraged bets on CEXs, which can amplify price swings through cascading liquidation events.

The impact of Bitcoin's volatility extends beyond its own market. Major altcoins like Ethereum (ETH), XRP, and Solana (SOL) also experienced significant rallies during the recent Bitcoin breakout, with ETH surging 7.6% to near $3,000 and Cardano (ADA) jumping over 15% in 24 hours Bitcoin Tops $118,000, Triggers Record $1.1 Billion in Short Liquidations^[1]. This cross-market effect highlights Bitcoin's continued role as a bellwether for the broader crypto ecosystem. However, the heightened leverage in the market introduces risks, as seen in the February 2025 liquidation event, where $2.29 billion in positions were wiped out within 24 hours, though most from longs rather than shorts Bitcoin Tops $118,000, Triggers Record $1.1 Billion in Short Liquidations^[1].

Analysts suggest that the interplay of geopolitical developments and market sentiment will shape Bitcoin's trajectory. Recent U.S. tariff announcements and the upcoming "Crypto Week" in Washington have added layers of uncertainty, while retail traders' aggressive positioning-evidenced by message volume and sentiment shifts-indicates sustained bullish momentum. The liquidation data, however, serves as a reminder of the fragility of leveraged positions in a market prone to rapid reversals.