- Bitcoin surged past $108,000, triggering a 240% spike in short liquidations within four hours as bearish traders were caught off guard.
- With 96.6% of circulating BTC now in profit, bullish sentiment is growing and FOMO is driving renewed market activity.
Bitcoin has once again flipped the script on bearish traders, triggering a dramatic short squeeze that sent shockwaves through the crypto market. In just four hours, short liquidations surged by a staggering 240%, reflecting a swift and unexpected shift in market sentiment.
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Bitcoin Shorts Get Crushed as Price Rallies
After enduring several days of declining funding rates and bearish sentiment, Bitcoin made a sharp upward move, climbing from $105,000 to over $107,000 in a matter of hours. This rapid ascent wiped out a significant number of short positions, catching many traders off guard. According to data from Glassnode, total short liquidations rose from $105K to $359K within four hours — a 240% increase that underscores the intensity of the squeeze.
The liquidations followed a broader pattern seen last week, where pessimism dominated the crypto market. Many traders bet on Bitcoin’s decline, but bullish strength quickly overwhelmed them as the market reversed. At the time of writing, Bitcoin is trading at $108,320.14, up 1.90% in the last 24 hours, according to CoinMarketCap.
FOMO Takes Over as Bulls Regain Control
The rapid liquidation of short positions has introduced a wave of fear of missing out (FOMO) among traders, fueling further buying pressure. The sudden turnaround has many now scrambling to reposition for potential gains rather than losses.
Glassnode data also reveals a bullish undertone in the broader market: 96.6% of all Bitcoin in circulation is currently in profit. This means the vast majority of holders are seeing positive returns, with only a small fraction in the red. If Bitcoin continues on this upward path, even more investors may find themselves back in profit territory.
Could Bitcoin Break New Highs Again?
Bitcoin recently set a new all-time high of $111,970.17 in May, and current market dynamics suggest another run may be in play. With short traders sidelined and bullish sentiment rising, Bitcoin appears poised for further gains — though volatility remains ever-present.
For now, the sharp liquidation spike serves as a reminder of just how quickly tides can turn in crypto. Traders should reconsider betting against Bitcoin’s rise, as the bulls continue to drive the price higher.
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