Bitcoin’s explosive rally has blindsided bearish traders, triggering a wave of liquidations that cleared out nearly $400 million in short positions. The world’s largest cryptocurrency surged over 3% in the past 24 hours to reach $102,500, with prices briefly touching $104,000—the highest level recorded since January 31.
The bullish breakout was fueled by two major developments: President Donald Trump’s announcement of a sweeping trade deal with the United Kingdom and record-breaking cumulative inflows into spot Bitcoin exchange-traded funds (ETFs), which have now exceeded $40 billion.
The rally extended beyond Bitcoin. According to TradingView, the total market capitalization of all cryptocurrencies excluding BTC jumped 10%, reaching $1.14 trillion—the highest level since March 6.
As prices surged, leveraged short bets—trades expecting prices to fall—were crushed. Liquidation occurs when a trader’s margin balance dips below required levels due to unfavorable price movements, prompting exchanges to forcibly close positions to prevent deeper losses.
Nearly $400 million worth of BTC short positions were liquidated over the past 24 hours, the highest single-day total since at least November. Meanwhile, just $22 million in long positions were liquidated, highlighting a dramatic tilt in market positioning.
This imbalance signals that bearish sentiment had been dominant—and the aggressive squeeze of short positions could pave the way for even greater upside. As traders scramble to adjust positions, the market could experience continued upward momentum.
The surge underscores Bitcoin’s growing role as both a macro-sensitive and sentiment-driven asset, with liquidity conditions and headline catalysts working in tandem to accelerate price movements.