Bitcoin Bull Run Triggers $200 Million Short Liquidations as Market Turbulence Intensifies

Bitcoin’s explosive surge to its highest valuation ever has roiled the cryptocurrency derivatives market, driving a wave of liquidations and underscoring intense volatility. Data indicates that over $200 million in Bitcoin (BTC) short positions were liquidated within 24 hours, reflecting a 137% spike in total crypto liquidations compared to the previous day. Such a dramatic uptick highlights speculative frenzy and potential overheating in the market.

Crypto Liquidations Explode Beyond $429 Million

According to data from CoinGlass on November 6 (Korea time), the total value of liquidations across the cryptocurrency market reached $429.35 million (approximately 605.8 billion KRW) in just 24 hours. This represented a sharp 137.58% increase from the prior day. The majority of these liquidations came from short positions totaling $243.55 million, far exceeding long liquidations, which stood at $185.81 million. Bitcoin dominated these events, with its rally past the $120,000 mark acting as the primary catalyst for forced sell-offs among overly leveraged traders betting on a price decline.

Bitcoin’s Surge to $120,000 Spurs Short Squeezes

Bitcoin led the liquidation wave with an astounding $198.1 million (approximately 279.5 billion KRW) liquidated in the last 24 hours. Of this, $143.66 million (approximately 202.7 billion KRW) came from short positions, making up 72.5% of BTC’s liquidations. The cryptocurrency’s record-breaking ascent to above $120,000 blindsided traders expecting a pullback, causing a widespread short squeeze and unleashing heightened market turbulence. This surge emphasized Bitcoin’s dominance, as its movements influenced broader cryptocurrency market behavior.

Ethereum and Solana Add to the Short Position Bloodbath

Other prominent cryptocurrencies mirrored Bitcoin’s impact. Ethereum (ETH) posted a modest 1.03% price gain but saw total liquidations worth $76.55 million (approximately 108 billion KRW). Of this amount, $41.64 million (approximately 58.7 billion KRW), or 54.4%, originated from short positions. Solana (SOL) experienced a similar trend, with more than 65% of its $65 million liquidations linked to traders betting against its price rally. Both cryptocurrencies showcased the perils of shorting in a volatile bull market.

Aster Defies the Rally as Longs Take the Hit

While most altcoins benefited from market optimism, Aster (ASTER) deviated from the trend, shedding 3.40% of its value compared to the previous day. This price decline placed long positions under pressure, resulting in liquidations of $5.53 million (approximately 77.5 billion KRW) in 24 hours. A significant 71% of this amount, or $3.91 million, stemmed from long liquidations, exposing the dangers of leveraged optimism. Aster’s drop was fueled by questions surrounding the reliability of its trading volume metrics on Binance, particularly after DeFi analytics platform DefiLlama excluded Aster futures data from its indices on November 5.

Surging Trading Volume and Open Interest Signal Speculative Frenzy

The cryptocurrency market witnessed a dramatic rise in trading activity over the 24-hour period. Total trading volume shot up by 86.3%, reaching $323.1 billion (approximately 452 trillion KRW). Concurrently, open interest (OI)—a measure of active derivative contracts—grew by 2.61%, climbing to $226 billion (approximately 319 trillion KRW). These metrics underline the speculative fervor driven by high leverage and rampant short covering, which helped amplify the market’s sharp movements. Such conditions have resulted in an environment of heightened sensitivity to both bullish and bearish pressures.

Global Liquidations and Bitcoin Sentiment Raise Red Flags

A total of 111,741 traders across the globe were liquidated within 24 hours, further emphasizing the volatility gripping the market. The largest single liquidation event involved a Bitcoin-USD position on the HyperLiquid exchange, amounting to $7.37 million (approximately 10.4 billion KRW).

Investor sentiment appears divided, oscillating between optimism and caution. The Fear and Greed Index—a popular market sentiment indicator—reads at 52, suggesting neutral conditions. However, Bitcoin’s Relative Strength Index (RSI) has climbed to 62.79, moving into "overbought" territory. This has raised concern among analysts, who warn of a potential near-term correction.

“The recent aggressive liquidation of Bitcoin shorts has undoubtedly driven the market’s upward momentum,” a market strategist commented. “However, with RSI showing overbought signals, we cannot dismiss the likelihood of a price pullback. A period of sector rotation into altcoins or a deleveraging phase may follow this rally.”

Stay Vigilant Amid Overheating Market Dynamics

As Bitcoin’s record-breaking rally continues to ripple across the crypto ecosystem, market participants are urged to remain cautious. The combination of soaring liquidations, elevated trading volumes, increasing open interest, and signs of overheated conditions raises the possibility of sharper price fluctuations. In this speculative environment, traders must closely monitor key metrics like RSI and market sentiment to anticipate potential corrections and navigate the enduring volatility that defines the cryptocurrency market.