Bitcoin Rallies Past $81K as Shorts Get Squeezed Out
Bitcoin's price has broken through the $81,000 mark, triggering a massive short liquidation wave. According to CoinGlass, $544.85 million worth of leveraged positions were liquidated across the broader crypto market within a 24-hour window.
The data reveals that $456.44 million came from short positions, compared to just $88.42 million on the long side. This imbalance is a classic hallmark of a full-blown short squeeze, where traders who bet on a price decline are forced to buy back their positions, mechanically fueling the price higher.
The rally was also driven by two major macroeconomic factors: a sharp decline in the US dollar and a presumed intervention by the Bank of Japan on the yen. Historically, Bitcoin maintains an inverse correlation with the dollar, so when it weakens, risk assets tend to appreciate.