Bitcoin Surge Wipes Out $1.23 Billion in Crypto Shorts

Crypto shorts suffered significant losses on August 19, 2026, as Bitcoin (BTC) surged to near $68,424. In a one-hour period, short positions worth $1.23 billion were liquidated, with most of the damage coming from BTC and Ethereum (ETH) positions. The total liquidations reached $1.31 billion, with shorts accounting for nearly all of it.

Three Hyperliquid whale wallets lost a combined $194 million, including one 1,800 BTC short worth around $117 million. The forced buying added fuel to the rally that began in the bond market and saw ETH gain 3.9% to trade above $2,000.

The Federal Open Market Committee (FOMC) minutes from its July meeting are set to be released at 2 pm ET, which could impact the rally's momentum. Markets currently price around 65% odds of a September hold, but a hawkish surprise could send yields back toward 5.3% and hand momentum back to the bears.