Crypto Rally Leads to $748.3 Million in Short Seller Liquidations

The crypto market has experienced a significant rally, leading to substantial losses for short sellers. Over the past 24 hours, the industry witnessed a total of $748.3 million in liquidations, affecting more than 130,000 traders. Short positions were particularly hard hit, with approximately $623.3 million in liquidations. The majority of these losses were attributed to Bitcoin shorts, which accounted for $475 million in liquidations as the cryptocurrency surged past the $120,000 mark.

Ethereum also faced considerable liquidations, with bearish bets against ETH resulting in around $52.7 million in losses, while long positions gave up another $26.3 million. In total, ETH liquidations exceeded $90 million as the asset reclaimed the $3,000 level. The largest single liquidation order occurred on a major exchange, valued at $98.10 million.

This wave of liquidations follows an already challenging week for short traders, with over $1 billion in short liquidations just days prior, marking the largest single-day wipeout in four years. The trend is driven by Bitcoin's continued upward momentum, which has strengthened bullish sentiment in the market.

Earlier in the day, Bitcoin briefly hit $123,000, fueling the uptrend that began earlier in the week. This rally is part of a broader positive shift in the market, supported by rising institutional flows and improving market confidence. Analysts suggest that Bitcoin's breakout from the $110,000 range indicates a new price discovery phase. Steady inflows into spot Bitcoin ETFs and strength in U.S. equities are reinforcing the current risk-on environment, providing a strong backdrop for the broader asset class.

Other analysts point to key technical triggers, noting that Bitcoin has broken through major liquidation levels and held above them. This, combined with an improving regulatory climate and rising corporate interest, is creating more room for upside. Bitcoin is now up 12% over the past seven days and more than 100% year-to-date. With the market holding strong above $120,000, the pressure on short sellers may not be over yet.