Bitcoin surges 4.6% to $116,400, triggers $1 billion short squeeze

Bitcoin's price has surged to a new all-time high, reaching approximately $116,400. This upward movement has resulted in a 4.6% increase over the past 24 hours and a 5.5% gain over the past week. The surge has significantly impacted short traders, who have collectively lost around $940 million in the past day. This has triggered a massive short squeeze, a phenomenon where short traders are forced to close their positions, driving the price even higher. At the time of reporting, total liquidations have reached about $1 billion, with 94% of these liquidations being sellers, indicating a strong dominance by buyers.

The broader cryptocurrency market has also seen substantial gains. Ethereum (ETH) is nearing $3,000, while XRP is trading close to $2.6. The total market capitalization of all cryptocurrencies is approaching $3.7 trillion. This widespread rally suggests a bullish sentiment across the market, with investors showing confidence in the long-term prospects of digital assets. The recent price action in Bitcoin has been particularly noteworthy, as it has not only set a new record but has also demonstrated the market's resilience and the potential for further growth. The short squeeze highlights the volatility and risk associated with short selling in the cryptocurrency market, as sudden price movements can lead to significant losses for those who bet against the asset.