Bitcoin’s Price Jump to $104K Triggers Nearly $400M in Short Liquidations, Paving the Way for More Upside Potential

Bitcoin’s recent surge in price has surprised many traders, resulting in significant liquidations of short positions betting against the cryptocurrency.

In the last day, Bitcoin has experienced a more than 3% increase, peaking at $102,500 and surpassing $104,000 at one point—the highest valuation since January 31. This rally coincided with announcements of a major trade agreement with the U.K. and record inflows into spot exchange-traded funds exceeding $40 billion.

The overall cryptocurrency market has also seen positive movement, with the combined market capitalization of altcoins—excluding Bitcoin—rising by 10% to reach $1.14 trillion, a level not seen since March 6, according to market analytics.

This upward trend has led to considerable liquidations of bearish short positions, which are leveraged bets that profit from declining prices. A liquidation occurs when a trader’s account balance dips below the necessary margin, often triggered by unfavorable price shifts. The exchange then automatically closes the position to mitigate further losses.

In the past 24 hours, close to $400 million in Bitcoin short positions have been liquidated, marking the highest daily total since at least November, as reported by Coinglass. Additionally, around $22 million in long positions have also been liquidated.

This pronounced disparity illustrates a heavy tilt toward bearish leverage, and the swift liquidation of short positions implies that the market may have more room to grow in the near future.