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Bitcoin’s sharp rebound toward $70,000 triggered the largest wave of crypto short liquidations in records dating back to 2021, as bearish traders were caught off guard by a rapid change in market sentiment.
Bitcoin climbed nearly 8% in 24 hours, briefly approaching $69,900 after trading near $64,100 earlier in the session. The move erased more than $2.7 billion in bearish crypto positions and pushed BTC above key technical levels.
According to CoinGlass, more than $1 billion of Bitcoin short positions were liquidated in roughly one hour, while Bitcoin shorts reached approximately $1.42 billion over the full day.
Total liquidations approached $3 billion across 172,108 traders. Shorts represented roughly 92% of the total, compared with about $257 million in long liquidations.
Ethereum contributed another $1.13 billion in liquidations, while Solana accounted for approximately $104.67 million. The largest single liquidation was reportedly a $48.8 million Bitcoin position on Hyperliquid.
The scale even exceeded the $2.47 billion in short liquidations recorded during the October 10, 2025 market crash, although total liquidations during that event reached roughly $19 billion.
The rally coincided with President Donald Trump meeting executives from Coinbase, Payward and Blockchain.com at the White House.
The meeting followed the SEC’s proposal for new crypto-specific fundraising exemptions, reinforcing expectations of a more supportive US regulatory environment.
“Crypto trading desks and market headlines have been inundated by sellers in the last few weeks,” said Joshua Lim, co-head of markets at FalconX.
“Despite that, price action held very firm in the low $60,000s, which turned into a sentiment and narrative shift.”
The US Treasury said it would increase the size of liquidity-support buybacks by at least double for securities in the 10-year to 30-year maturity range. Treasury yields and the dollar subsequently declined, improving conditions for risk assets.
“Bitcoin shorts was a conviction trade over the last few weeks, but the news today from the Treasury in the US has obviously triggered a confidence-induced rush into risk assets like BTC,” said Adam McCarthy, head of research at LO: TECH.
US spot Bitcoin ETFs recorded $517 million in daily net inflows, their strongest figure since May. Ether surged 16%, its biggest one-day increase since May 2025.
Bitcoin also moved back above its 100-day and 200-day moving averages. “The move towards $70,000, triggered by short-covering, suggests buyers are regaining confidence, although the rally now faces a crucial test of whether it can sustain momentum and challenge the $75,000 region,” said IG analyst Axel Rudolph.
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Short covering provided powerful fuel for Bitcoin’s rebound, but it is temporary. With many bearish positions already cleared, Bitcoin now needs fresh spot demand and continued ETF inflows to sustain a move above $70,000 and potentially challenge $75,000.
