Huge Liquidations Hit the Crypto Market – Short Sellers Crushed Overnight
What Just Happened?
The crypto market saw a massive shake-up last night. Over $530 million worth of trades were wiped out in just a few hours. Out of this, around 88% were short positions—traders who were betting that prices would fall. In total, more than 115,000 traders were liquidated. The biggest hit? A huge $51.5 million BTC/USDT position vanished as Bitcoin broke above $112,000, catching most bears off guard.
Why Did This Happen?
Bitcoin Breakout: BTC jumped sharply, pushing through major resistance levels with ease. Once it crossed $110,000, a wave of stop-losses was triggered, adding more fuel to the rally.
Dovish Fed: Recent comments from the U.S. Federal Reserve suggested they may slow down rate hikes.
Regulation Update: The upcoming CLARITY Act (July 14) is expected to provide clearer rules for digital assets, giving big investors a reason to enter the space.
High Leverage: Many traders were using large amounts of borrowed money (leverage). When BTC pumped, their losses grew fast, and exchanges closed their trades automatically—causing a chain reaction of more buying (short squeeze).
