Crypto Surge Triggers Record Short Liquidations as Bitcoin Hits New High

The cryptocurrency market surged on Wednesday, sparking a record $2.7 billion in short liquidations. The largest cryptocurrency, Bitcoin, jumped nearly 8% to around $69,500, its highest level since early June and biggest gain since March.

According to data from Coinglass, over $1 billion of Bitcoin short positions were liquidated in about an hour, underscoring the speed of the reversal. The surge came as President Donald Trump met with crypto executives at the White House, adding to optimism around a more industry-friendly regulatory framework for digital assets.

The upswing also coincided with falling borrowing costs, which added another tailwind to the market. Axel Rudolph, chief technical analyst at IG, noted that the move towards $70,000 suggests buyers are regaining confidence, but the rally now faces a crucial test of whether it can sustain momentum and challenge the $75,000 region.

The size of the move is also a sign of how one-sided the market had become. Bearish positioning had piled up in Bitcoin after months of selling, leading to a forced buying frenzy that accelerated the rebound.