Bitcoin climbed to $72,000 on Tuesday for the first time since June 1, triggering the largest short liquidation event in crypto history. The move came as Hyperliquid (HYPE) and Pepe Coin (PEPE) led altcoin gains with rises of more than 20%, and Bitcoin finally broke its 200-day exponential moving average after a historic short squeeze.
The biggest short liquidation on record
The surge wiped out leveraged traders who had bet against the market. The numbers are staggering. The total value of short positions forcibly closed exceeded any prior event, according to the data. This isn't the first time a squeeze has rattled the derivatives market, but the size of this one stands out. It's a reminder of how quickly leverage can unwind when prices move against the crowd.
Altcoin leaders: HYPE and PEPE
While Bitcoin grabbed the headline number, the real action was in altcoins. Hyperliquid's native token and Pepe Coin each gained more than 20%, outpacing the broader market. The two tokens have been volatile in recent weeks, but Tuesday's move pushed them well into green territory. For traders who'd been sitting on the sidelines, the jump is a clear signal that risk appetite is back.
Bitcoin breaks the 200-day EMA
For technical traders, the break above the 200-day exponential moving average is a meaningful signal. Bitcoin had been trading below this level since early June, and the crossover is often seen as a bullish indicator. The fact that it came on the back of a short squeeze adds an extra layer of momentum, though it also means the move could be prone to a pullback if the squeeze loses steam. The previous time Bitcoin traded at $72,000 was June 1, just before a pullback that took it below the 200-day EMA. Whether the break holds this time will depend on whether the market can sustain the rally without another wave of forced buying. For now, the record liquidation event has reset the derivatives landscape.
