Bitcoin Surge Triggers $680 Million Crypto Liquidations

In the past 24 hours, more than $680 million in crypto positions were liquidated, with short traders bearing the brunt of the losses as Bitcoin surged above $121,000. This breakout triggered a chain reaction across derivatives markets, leading to significant liquidations. Roughly $426 million of the total liquidations were from bearish bets, marking one of the largest weekend liquidation events in recent months. The largest single order, a $92.5 million BTC short, was flushed on HTX.

Bitcoin alone saw $291 million in forced closures, with futures tracking ether (ETH) and XRP following at $68 million and $17 million, respectively. XLM (XLM) and pepecoin (PEPE) also posted elevated activity, signaling that the squeeze extended deep beyond major tokens. Meanwhile, dogecoin, Solana's SOL, and SUI saw rising open interest, though with relatively smaller drawdowns, indicative of higher spot-based demand.

Liquidations occur when traders using leverage are forced to close their positions due to margin calls. While they often signal excessive positioning, they also serve as a reset mechanism for markets, flushing weak hands and clearing the way for new directional flow. Bitcoin’s rally in the past week has sparked a broader breakout across major crypto assets. Traders say that market structure is evolving under the weight of institutional influence — with eyes on the $130,000 mark in the short term.