Bitcoin Hits One-Month High: Over $200 Million in Shorts Liquidated Amid Market Turbulence

The cryptocurrency market witnessed a dramatic upswing as Bitcoin surged to its highest price in a month, catalyzing widespread liquidations of short positions. This rapid price action unsettled bearish traders, with total cryptocurrency market liquidations surpassing $200 million, highlighting the high volatility within the sector.

$238 Million Liquidations in a Single Day

Data from Coinglass revealed that total liquidation activity over the past 24 hours hit $238.51 million (approximately KRW 323.5 billion). Short positions bore the brunt of these losses, accounting for $152.60 million (around KRW 207 billion), or 64% of the total. This sharp increase in short liquidations resulted from Bitcoin's unexpected price rally. Comparatively, long positions experienced liquidations worth $85.92 million (around KRW 116.5 billion), as the market underwent a swift repricing of assets.

Bitcoin Dominates Liquidation Volumes

As expected, Bitcoin led the liquidation charts, with $75.54 million (about KRW 102.5 billion) liquidated across the market. Of this, short liquidations accounted for an overwhelming $68.73 million (around KRW 93 billion), far surpassing long liquidations, which stood at just $6.81 million. This disparity underlines the squeeze experienced by bearish traders betting against Bitcoin's price climb.

Bitcoin's strong daily performance contributed to this shakeout. According to CoinMarketCap data, as of 10:25 a.m. KST, Bitcoin was trading at $11,7347.40, reflecting a 0.57% gain over the past 24 hours. Earlier in the day, the cryptocurrency spiked to $11,7888.41 around 3:50 a.m. KST, before pulling back slightly to stabilize near the $11,7000 range.

Altcoins Face Significant Liquidations

The liquidation wave wasn’t confined to Bitcoin. Ethereum (ETH) and several prominent altcoins also experienced heavy liquidation activity. Ethereum's total liquidations reached $41.58 million (approximately KRW 563.7 billion), followed by Solana (SOL) at $14.03 million (KRW 19.02 billion), Dogecoin (DOGE) at $9.47 million (KRW 12.84 billion), and Ripple (XRP) at $7.95 million (KRW 10.78 billion).

Interestingly, Ethereum’s liquidation dynamics offered a contrast to Bitcoin. Long positions accounted for $23.42 million of Ethereum's liquidations, exceeding short liquidations, which stood at $18.16 million. Unlike Bitcoin, Ethereum’s price slipped marginally, declining 0.06% during the 24-hour window.

Other Cryptocurrencies Join the Liquidation Spree

A range of additional digital assets faced notable liquidation events amid broader market adjustments. HYPE saw liquidations reach $12.34 million, SUI followed closely at $12.10 million, while BNB logged $9.79 million and ADA (Cardano) trailed with $9.43 million. These figures underscore the far-reaching impact of Bitcoin's price movements, which often reverberate throughout the entire cryptocurrency market.

Market Trends: Declining Volume, Rising Open Interest

Overall, trading volume across the cryptocurrency market saw a daily drop of 27.50%, shrinking to $26.53 billion (approximately KRW 3.5993 trillion). At the same time, open interest—representing the total value of outstanding derivative contracts—rose by 1.75%, reaching $228.27 billion (approximately KRW 30.9923 trillion). This divergence suggests that the market’s recent activity was less about new trading entries and more about existing positions being forced closed amid rising volatility.

Sentiment Holds Steady Despite Turbulence

The Crypto Fear and Greed Index, a barometer of market sentiment, remained stable at a neutral score of 53—just one point higher than the previous day’s reading of 52. Despite the heightened volatility and liquidation activity, the lack of notable movement in sentiment indicates that investors remain cautiously balanced between optimism and caution.

The Big Picture: Bitcoin’s Role as a Momentum Driver

The broader cryptocurrency market remains in flux, buffeted by bouts of short-term volatility. Bitcoin, as the market’s flagship cryptocurrency, continues to serve as a key barometer of sentiment and momentum. Its latest price surge not only destabilized bearish traders but also signaled a potential shift in market dynamics. With short liquidations reaching substantial levels, all eyes will be on whether Bitcoin can sustain its current trajectory or prompt further market re-calibration.