What happened?
The crypto market experienced massive upheavals last night. Over $530 million worth of trades was wiped out in just a few hours. Of this, around 88% were short positions — traders betting on price declines. In total, more than 115,000 traders were liquidated. The biggest hit? A huge BTC/USDT position of $51.5 million vanished when Bitcoin crossed the $112,000 mark, catching vulnerable bears off guard.
Why did this happen?
Bitcoin breakout: BTC surged sharply, easily surpassing key resistance levels. When it crossed the $110,000 mark, a wave of stop-losses triggered, adding more fuel to the rally.
Soft Fed policy: Recent comments from the U.S. Federal Reserve indicated the possibility of slowing interest rate hikes.
Regulatory update: The upcoming CLARITY Act (July 14) is expected to provide clearer rules for digital assets, giving large investors a reason to move into this space.
High leverage: Many traders used large amounts of borrowed funds (leverage). When BTC rose, their losses quickly escalated, and exchanges automatically closed their trades — triggering a chain reaction of even more buying (short squeeze).
What does this mean for traders?
Short squeeze still active: If Bitcoin stays above $110K, we may see even more liquidations — possibly another $1.3 billion wiped out.
Support zones: Key support is around $106,000. If BTC falls below this, a correction may follow.
Risk management is key: In such times, it is wise to use less leverage and keep your stop-loss within limits.
Looking ahead – What’s next?
Market sentiment has shifted. Bears are in a panic, while bulls are gaining strength. Some believe this rally is just the beginning of a larger breakout. Others warn that it could cool off quickly. But one thing is clear — volatility is here. If BTC continues to rise, altcoins may follow suit. But traders should stay vigilant.
Large liquidations like these often mean that we are in for new price swings. So keep an eye on the charts, manage your trades, and be ready — this market heats up quickly.#TrendTradingStrategy
#BTCBreaksATH
#SECETFApproval