Bitcoin Shorts Liquidated as Cryptocurrency Market Surges Post-Record High

The cryptocurrency market witnessed a major upheaval as Bitcoin (BTC) rebounded sharply after a minor pullback from its record high, triggering an extensive wave of short-position liquidations. Traders betting on Bitcoin's price decline faced heavy losses within a 24-hour window as the cryptocurrency regained upward momentum, signaling renewed bullish sentiment in the market.

Significant Liquidations Shake the Derivatives Market

The digital asset derivatives market saw a total liquidation volume of $364.73 million (approximately KRW 511.8 billion) within the past 24 hours, as reported by Coinglass on the 9th (Korea Standard Time). This represents a 44.29% drop from the previous day. Breaking down the numbers, $200.25 million (KRW 281.6 billion) came from long positions, while $162.23 million (KRW 229.8 billion) came from short positions.

The sharp price rebound of Bitcoin, following its 3% correction after achieving a historic high, played a critical role in this liquidation cascade. The imbalance was particularly pronounced among traders holding bearish short positions, underscoring the market’s volatility.

Bitcoin and Ethereum Dominate Liquidation Activity

Bitcoin led the liquidation totals, with $88.65 million (KRW 124.3 billion) worth of positions wiped out in a single day. Ethereum (ETH) followed closely behind, recording $85.17 million (KRW 119.4 billion) in liquidations. Combined, these two major cryptocurrencies accounted for over half of the overall liquidation volume in the market.

Bitcoin's liquidation data highlighted a greater impact on short positions, reflecting bullish price momentum. The cryptocurrency recorded $35.25 million (KRW 49.5 billion) in long liquidations and $53.40 million (KRW 74.9 billion) from shorts. In contrast, Ethereum experienced a higher proportion of long-position liquidations, with $46.92 million (KRW 65.8 billion) cleared versus $38.25 million (KRW 53.7 billion) from short positions.

Altcoins See Mixed Liquidation Volumes

The liquidation wave was not isolated to Bitcoin and Ethereum, as altcoins also suffered significant position clearings. Among notable cryptocurrencies, Solana (SOL) led the pack with $21.24 million (KRW 29.8 billion) in liquidations, followed by Dogecoin (DOGE) with $13.54 million (KRW 19 billion). Ripple (XRP) and Binance Coin (BNB) rounded out the group, with liquidation volumes of $8.39 million (KRW 11.8 billion) and $10.98 million (KRW 15.4 billion), respectively.

This widespread liquidation activity reflects the interconnected nature of the cryptocurrency market, where price movements in major assets often ripple through to altcoins.

Trading Volume Dips, Optimism Prevails

Despite the liquidation turmoil, overall trading volumes in the cryptocurrency market dropped significantly. Over the past 24 hours, trading volume stood at $293.9 billion (KRW 412 trillion), marking a 26.69% decline from the day prior. Open interest, which measures the total value of unsettled derivative contracts, fell to $220.2 billion (KRW 309 trillion), representing a modest 2.33% decrease.

Nevertheless, optimism among investors remains buoyant. The Alternative "Fear & Greed Index," a popular metric that gauges market sentiment, climbed to 70 on the 9th, categorizing the market firmly within the "Greed" zone. This represents a substantial uptick from the previous day's score of 60, reflecting increasing risk appetite and confidence in the ongoing rally.

Market Outlook: A Bullish Undertone Amid Corrections

Bitcoin and Ethereum continue to exert outsized influence on market dynamics, driving both investor sentiment and trading activity. As Bitcoin rebounds from its minor correction and investor optimism mounts, all eyes remain on the capacity of institutional and retail demand to sustain the upward trajectory. With record highs and liquidations highlighting both the risks and rewards of the market, the evolving interplay of supply and demand will be the key driver of future price action.

The sustained bullish sentiment indicates growing alignment between market performance and investor confidence, suggesting that digital assets remain a focal point for speculative interest despite periodic volatility.