Bitcoin traded above $68,000 on Wednesday, and ether jumped 9%, as a wave of leveraged positions were forced to close. Coinglass data shows $1.91 billion in positions were liquidated over the past 24 hours, with shorts accounting for $1.74 billion of that. The liquidation volume was roughly eight times the previous day's, a sign of a violent short squeeze.
The short squeeze
The move caught many traders off guard. Bitcoin's push past $68,000 came after a period of consolidation, and the rapid price increase triggered a cascade of stop-losses and margin calls. Short sellers, who had bet on a decline, were forced to buy back their positions, adding fuel to the rally. Ether's 9% gain outpaced Bitcoin, suggesting the squeeze was broad-based across major cryptocurrencies.
Liquidation breakdown
According to Coinglass, the $1.91 billion in liquidations is the largest single-day figure in recent weeks. Shorts made up the vast majority, at $1.74 billion, meaning the move was primarily driven by short covering rather than new long positions. The volume was eight times the previous 24-hour period, underscoring the intensity of the price action. Leveraged traders on both sides felt the pain, but the data points to a market that was heavily positioned for a drop.
What traders are watching
The question now is whether the rally can hold. Bitcoin's move above $68,000 is a key level, and traders will be watching the next few sessions to see if the momentum continues. The liquidation of so many short positions has cleared the deck, but it also means the market is less leveraged, which could lead to a more sustainable advance if buyers step in.
