Crypto▲ Bullish
Short Liquidations Hit $1.48 Billion as Crypto Rallies
Over $1.48 billion in crypto short positions were liquidated in 24 hours as Bitcoin surged past $77,000. The move followed a Treasury buyback announcement. XRP and ETH also rallied. MANTRA's OM token dropped 18.5% after an exploit.
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More than $1.48 billion in crypto positions were liquidated over 24 hours, with short sellers bearing the brunt of the losses, according to data from Coinglass. Roughly 174,000 traders had their positions closed automatically as Bitcoin, Ethereum and XRP rallied sharply.
Bitcoin rose about 8.8% to $77,000, briefly touching its highest level since May. The move triggered $830.73 million in Bitcoin liquidations, most of them short positions. Ethereum climbed 10.1% to $2,315, accounting for $206.88 million in liquidations. XRP surged 16.2% to $1.26, adding another $41.9 million.
The liquidation wave started after the U.S. Treasury said it would double the size of its long-term debt buybacks to at least $4 billion per operation. The announcement improved risk sentiment and helped Bitcoin recover from the $64,000 area. As prices moved higher, leveraged short positions hit their liquidation thresholds. Exchanges bought back the underlying assets to close those positions, which added more buying pressure and triggered further liquidations in a feedback loop that continued for multiple sessions.
Bitcoin briefly reached $79,000 before pulling back. The rally built on an earlier short squeeze that saw over $3 billion in positions liquidated when Bitcoin crossed $71,000.