Bitcoin Rockets Past $118K, Leads to Over $1B Shorts Getting Liquidated
Bitcoin’s surge past $118,000 triggered the year’s largest cryptocurrency market liquidation event, overwhelmingly impacting leveraged short sellers. Within 24 hours, over $1.13 billion in positions were liquidated, with a staggering $1.01 billion stemming from short sellers – the most significant short-side wipeout of 2025 to date. This dramatic event underscores the aggressive bearish sentiment preceding Bitcoin’s price jump.
The surge in liquidations was primarily driven by Bitcoin futures, accounting for $590 million in losses, followed by Ether futures at $241 million. A total of approximately 237,000 traders experienced liquidations, with the largest single loss reaching $88.5 million on a BTC-USDT short position on the HTX exchange. The sheer scale and imbalance are striking: nearly 90% of liquidated positions were shorts, highlighting the significant bets against Bitcoin’s price appreciation.
Bybit and HTX bore the brunt of the losses, absorbing $461 million and $193 million in liquidations, respectively, with over 93% of Bybit’s losses attributed to short positions. Binance also experienced significant liquidations, totaling $204 million. These liquidations represent a classic case of short squeezes, where traders betting against price increases are forced to close their positions as the market moves against them. This forced selling often exacerbates upward momentum, creating a self-reinforcing cycle.
The massive liquidation event coincided with a broader surge in optimism across cryptocurrency markets. This positive sentiment follows indications of potential policy shifts in the United States and robust performance in the equity markets. Bitcoin reached new all-time highs, while other major cryptocurrencies like XRP, Ether, Dogecoin, and Solana also saw significant gains, ranging up to 5%, driven by various market narratives. The event serves as a stark reminder of the inherent risks associated with leveraged trading in volatile markets, particularly when significant bearish sentiment is present. The sheer volume of liquidations underscores the magnitude of the shift in market sentiment and the subsequent price action.
