BTC Reaches New All-Time High, Triggering $1 Billion in Short Squeezes

Bitcoin short-sellers faced significant losses early Thursday as the cryptocurrency surged past its previous all-time high, leading to over $1 billion in short positions being liquidated within a 24-hour period.

According to CoinGlass data, approximately $1.01 billion in cryptocurrency short positions were liquidated, affecting 232,149 traders. The breakdown revealed roughly $570 million in Bitcoin (BTC) short positions and $206.93 million in Ether (ETH) short positions liquidated, as BTC climbed above the $116,500 mark.

*Bitcoin liquidations totaled $590.04 million over the past 24 hours with only $20.21 million being long positions. Source: CoinGlass*

The rapid ascent came as Bitcoin logged consecutive record highs, reaching $112,000 on Wednesday and surpassing $116,500 on Thursday, while Ether saw notable gains, surpassing the $2,990 threshold.

Industry Reacts to Sharp Market Spike

Crypto market capitalization jumped 4.4% over the past 24 hours to $3.63 trillion, according to CoinMarketCap data. The dramatic surge fueled commentary across social media platforms.

Crypto analyst Miles Deutscher commented on X, stating: “Bears in disbelief.” Chiming in, crypto trader Daan Crypto Trades described the situation as a “MASSIVE Short squeeze on BTC & ETH.” Velo further noted the liquidation event’s significance, suggesting “Lots of emails are being sent.”

The Crypto Fear & Greed Index held steady at a “Greed” score of 71 out of 100 on Thursday, slightly lower than last week’s 73.

The Crypto Fear & Greed Index held steady on Thursday. Source: Alternative.me — *The Crypto Fear & Greed Index held steady on Thursday at a “Greed” score of 71 out of 100. Source: Alternative.me*

While this week’s surge has dominated headlines, it follows a larger liquidation event on February 3, where over $2.24 billion was liquidated amid growing trade war concerns.

Divided Opinions on Bitcoin’s Altoid Run

Despite Thursday’s gains, the path to these all-time highs was met with skepticism from some analysts. Bitfinex noted on Tuesday that Bitcoin “traders were showing a lack of follow-through strength” around the $108,500 level.

However, with the highs reached this week, the sentiment clearly shifted. Analysts like Michaël van de Poppe had previously predicted a potential breakout to a new ATH “during the upcoming week,” which appears to have materialized.

Looking ahead, traders with long positions are now keeping a close eye on the market dynamics, with approximately $2.11 billion in long positions exposed to potential liquidation if Bitcoin were to retrace significantly.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.