Crypto Market Roars Back: Nearly $360M in Short Positions Liquidated as Bitcoin Surges Past $116,000
The cryptocurrency market has recently experienced a significant rally, particularly benefiting Bitcoin and Ethereum, which led to substantial losses for investors holding short positions. This market upswing marks a strong rebound from an earlier slump, catching many bearish traders off guard.
Bitcoin and Ethereum Lead a Strong Recovery
Over the past day, Bitcoin staged a remarkable rally, breaking above the $116,000 mark, while Ethereum followed suit, touching an impressive $4,250. This surge triggered a massive wave of liquidations across derivatives exchanges. According to CoinGlass data, approximately $467 million worth of cryptocurrency-related derivatives contracts were forcibly closed in the last 24 hours. The overwhelming majority of these liquidations, totaling $358 million (76.6%), were bearish bets, highlighting the unexpected strength of the market's upward momentum. Bitcoin accounted for the largest share of these liquidations at $177 million, with Ethereum contributing $130 million, and Solana also seeing a notable $34 million flush.
Spot ETF Inflows Signal Bullish Sentiment
Beyond the immediate price action, both Bitcoin and Ethereum spot Exchange-Traded Funds (ETFs) have demonstrated robust investor interest. Bitcoin spot ETFs have recorded a substantial $4.7 billion in inflows over the past month. Similarly, Ethereum spot ETFs, which received approval in mid-2024, attracted $983 million in inflows during the same period. While Ethereum's inflows are less than Bitcoin's, they still represent significant capital deployment into the asset class, indicating a growing institutional and retail confidence in these major cryptocurrencies. This sustained positive net flow into regulated investment products could be a key factor supporting the market's recovery and future growth.
