Crypto Bears Absorb $1.48 Billion in Short Liquidations Amid Market Rally

Crypto bears have been dealt a significant blow as the market continues to rally. Over $1.48 billion in short liquidations occurred over the past 24 hours, with Bitcoin leading the charge. The price of BTC surged towards $80,000, reaching an 8.8% increase and triggering around $830.73 million in liquidations. This is part of a larger market-wide rally fueled by Treasury buybacks and forced buying.

According to data, more than 1.74 million traders were affected by the liquidations, with short positions accounting for roughly $257.94 million in losses. Meanwhile, long positions saw around $41.97 million in liquidations. The strength of the rally is not limited to Bitcoin, as Ethereum and XRP also posted significant gains.

Ethereum climbed approximately 10.1% to $2,315, while XRP rose by about 16.2% to $1.26. The market's current momentum suggests that the rally may be more than just a short squeeze. However, it is essential to note that liquidations alone do not guarantee continued upward movement.

The next phase will depend on whether fresh spot demand enters the market and supports prices after leveraged shorts have been cleared. If buyers maintain control, the current short squeeze could evolve into a broader market recovery. On the other hand, if momentum fades, traders who bought into the rapid rally may begin taking profits.