Nearly $530 million in short positions faced liquidation as Bitcoin and other cryptocurrencies surged amid potential U.S.-China tariff reductions. Bitcoin increased from $88,000 to $93,500, leading a broader market rally with ETH, ADA, and DOGE also rising significantly. The largest liquidations occurred on Bybit and Binance, driven by an optimistic sentiment regarding trade agreements.
In a notable market shift, nearly $530 million in short positions incurred losses as cryptocurrencies surged amid expectations of potential U.S.-China trade tariff reductions. Bitcoin led this rally, climbing from $88,000 to over $93,500; meanwhile, ether, Cardano, and Dogecoin also registered significant gains, each increasing by 14%. Other cryptocurrencies like Solana and XRP rose by 7%, and several tokens in the top hundred by market cap experienced growth.
The primary short liquidations took place on prominent exchanges such as Bybit with $234 million, Binance at $100 million, and Gate with approximately $70 million. The largest individual liquidation occurred on Binance with an ETH futures position exceeding $4.5 million. Liquidations reflect the forced closure of leveraged trading positions when traders fail to maintain requisite margin levels.
This spike in cryptocurrency prices was influenced by comments from former President Trump, suggesting a willingness to reduce tariffs in trade discussions with China. Such developments have lessened fears of an escalating trade war and prompted a more optimistic sentiment among traders. Jeff Mei from BTSE speculated that this trend could enhance Bitcoin’s appeal as a stable store of value, particularly if the U.S. dollar continues to weaken.
