Bitcoin, ether and solana climb as another $1 billion shorts get wiped out
Cryptocurrency markets saw a sharp rally as over $4 billion in short positions were liquidated, forcing traders to buy back assets. The surge was further supported by U.S. Treasury bond buybacks and positive political sentiment regarding digital asset legislation.
Why it matters
Market mechanics like short squeezes can cause rapid price volatility, while regulatory developments in Washington continue to influence investor confidence in crypto assets.
Short sellers took another beating, as roughly $1 billion of short positions were liquidated over 24 hours out of $1.23 billion in total, across 140,416 traders, per CoinGlass.
That follows the $3 billion of shorts wiped out on Thursday, the largest single-day figure in records going back to 2021, bringing the two-day total to more than $4 billion. The largest individual position closed in the latest session was a $25.13 million bitcoin trade on Hyperliquid.
A liquidation happens when a trader borrows to make a bigger bet than their money would cover, the market moves against them, and the exchange closes the position automatically before the losses exceed what they put down. These were traders betting the price would fall, and each forced closure pushed prices up and created a cascade of liquidations.
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