Bitcoin Breaks Through Spectacularly, Surpassing $100K, A Series of Short Positions Liquidated

In the past 24 hours, the cryptocurrency market has experienced a strong bullish surge, led by Bitcoin with an increase of over 3%, reaching $104,000 — the highest level since January 31. This development has surprised many traders and led to a series of short positions being liquidated due to unfavorable price fluctuations.

The boost from macro information and ETF capital flow The bullish trend of Bitcoin occurred right after former U.S. President Donald Trump announced a comprehensive trade deal with the United Kingdom. In addition, the ( spot Bitcoin ETFs also recorded a record inflow of over $40 billion. These are positive signals that reinforce investor confidence in the long-term development of the cryptocurrency market. The overall market is recovering strongly. Not just Bitcoin, the cryptocurrency market as a whole has also shown a noticeable recovery. The total market capitalization of all cryptocurrencies, excluding BTC, has increased by 10% to $1.14 trillion — the highest level since March 6. According to data from TradingView, this is the strongest recovery in nearly two months, indicating a positive sentiment spreading across the market. A series of short positions were liquidated The unexpected upward trend has caused traders betting on a price decline )short( to find themselves in a passive position. As prices surged, these positions were "blown away" due to insufficient margin to maintain them, leading to the exchange automatically closing the positions to avoid excessive losses. In just one day, nearly $400 million in short positions against BTC were liquidated — the highest level since November last year, according to data from Coinglass. Notably, alongside the short positions, there were also approximately $22 million in long positions liquidated, indicating that strong volatility still exists in the short term and not a few traders also misjudged the timing despite betting in a bullish direction. Leverage tilted towards the bears – a potential signal for the market The mass liquidation of short positions reflects an imbalance of leverage in the market, as bearish sentiment has been overwhelmingly dominant recently. Now, with the selling pressure being "swept away", the space for the market's next bullish move is widening. If the capital continues to flow into ETF products and macro factors remain positively aligned, Bitcoin could reach new heights in the near future.