Bitcoin climbed roughly 5.7% in a single day to intraday highs near $85,300, triggering approximately $918.9 million in forced short position closures across crypto derivatives markets over a 24-hour period.
Short positions accounted for between 86% and 95% of all liquidations during the surge. The largest single liquidation was a BTC-USDT position on Binance at approximately $11.29 million, with the liquidation cascade concentrated primarily in Bitcoin and Ethereum positions. Total liquidations across both long and short positions reached approximately $746 million to $790 million in core data, with the broader $918.9 million figure incorporating additional altcoin positions.
How the squeeze unfolded
Analysts had identified notable clusters of short interest positioned in the $83,000 to $86,000 price range prior to the breakout. Once Bitcoin cleared the $82,000 resistance level and then $84,000, these concentrated shorts became fuel for accelerating gains. The forced buying from liquidations created additional upward pressure, triggering a cascade of further closures.
The rally occurred amid a favorable macroeconomic backdrop, with declining oil prices and falling Treasury yields reducing the opportunity cost of holding non-yielding assets like Bitcoin.
Market signals
Despite the significant liquidations, open interest grew by approximately 7.6% to 8%, reaching an estimated $156 billion, indicating traders were actively replacing liquidated positions with new ones. Trading volume surged by an estimated 39% to 58%, suggesting market participation intensified rather than retreated.
Analysts attributed the sustained momentum to both mechanical short-covering and genuine spot demand, with real buyers stepping in alongside forced liquidation buying to help Bitcoin clear resistance levels.
