Bitcoin’s Historic Surge Leads to $480 Million in Liquidations

Bitcoin’s astonishing all-time high has forced nearly half a billion dollars in short positions to be liquidated today, an unexpected event since the last squeeze in May.

Bitcoin’s Surge Triggers Liquidations

Bears Are Running Scared as Bitcoin Surges Bitcoin’s latest all-time high has taken many by surprise, especially those betting against its rise. In an unexpected twist, nearly $480 million worth of short positions were liquidated today—marking the most significant bear squeeze seen since May 6. Following the release of the FOMC Minutes, which hinted at potential interest rate cuts in July, the crypto market reacted in lively fashion as traders scrambled to jump on the possibility of looser monetary policy.

Traders Experience a Rough Day

Massive Liquidations Recorded CoinGlass, a crypto analytics firm, reported that the last 24 hours saw a staggering $480 million liquidated in short positions. Of that figure, Bitcoin accounted for more than $200 million in liquidations alone. In total, around 106,930 traders found themselves in a tough spot, their positions wiped out—this can be considered an extraordinary bear hunt that has not been observed since early May.

Caught Off Guard by Price Movements

Major Liquidation on HTX Exchange Among the impressive figures, the biggest single liquidation took place on the HTX exchange where a shocking $51.56 million BTC-USDT short position was liquidated all in one go. Significantly, short positions generally represent over 95% of all liquidations across many major crypto trading platforms. Traders seemed to be anticipating a price rejection around the $111,000 mark, but Bitcoin defied expectations, continuing its upward momentum and making history along the way.

Funding Rates Spike as Market Gains

Resurgence of Momentum Across Crypto Market This notable price surge has not only led to liquidations of over-leveraged shorts but has also reignited bullish sentiment in the broader cryptocurrency market. As excitement builds around Bitcoin’s rise, funding rates took an upward turn, contributing to an increase in the overall cryptocurrency market capitalisation by over $15 billion in just one day. It’s a clear indicator of interest and enthusiasm among investors looking to capitalise on these developments.

Investors Anticipate Future Data

What’s Next for Bitcoin? Currently, Bitcoin sits at around $111,543 as eager investors await further developments that could fuel the rally. Eyes will be on the U.S. Consumer Price Index (CPI) next week, as this data will likely shed light on how the Federal Reserve might approach monetary policy moving forward. All these factors are circling around the FOMC meeting scheduled for July 29, making it a potentially pivotal moment for both Bitcoin and the crypto market.

In summary, Bitcoin’s recent upward surge has resulted in a staggering $480 million in liquidations, the largest in over two months. With onlookers keenly following upcoming economic data, particularly the CPI, the future momentum of the cryptocurrency market remains uncertain but brimming with potential. As investors digest these developments, it seems that the thrill of crypto will continue to captivate in the face of shifting monetary policy and market conditions.