Today (14th), Bitcoin continued its strong momentum during the afternoon session, accelerating rapidly to break through the $122,000 barrier, not only setting a new historical high but also triggering a wave of short liquidations in the derivatives market, with over 120,000 traders being liquidated.
According to Coinglass data, the total liquidation amount in the cryptocurrency derivatives market over the past 24 hours reached $701 million, of which $588 million came from short positions.
Bitcoin traders suffered the most significant losses, with approximately $444 million in positions being liquidated, of which $435 million came from short positions. The most severe record occurred in Binance's BTCUSDT futures contract, where a short position valued at $98.1 million was forcibly liquidated.
Meanwhile, Ethereum and Ripple (XRP) were also forcibly liquidated for $79.05 million and $19.83 million, respectively; while the meme coin Pepecoin (PEPE) also saw abnormal trading volumes, with significant liquidation scale, indicating that this short squeeze has spread from mainstream coins to meme coins, leading to a complete collapse of the market bears.
The so-called liquidation refers to the situation where leveraged traders suffer from insufficient margin due to excessive price fluctuations, leading exchanges to automatically force liquidation to avoid further losses. Although liquidations often indicate an overheated market leverage, on the other hand, it also helps to clear floating chips, releasing space for subsequent upward movements, paving the way for a new round of market trends.
Bitcoin has recently shown a strong upward trend, driving the entire cryptocurrency market to rise simultaneously. Market analysts believe this surge is mainly driven by institutional funds, with Bitcoin spot ETFs continuously attracting capital, and favorable policies gradually being introduced. The market structure is quickly being reshaped, with an increase in the concentration of funds and chips.
Now, the market's focus has shifted to the next hurdle — $130,000. Although Bitcoin may still be affected by U.S. inflation data and Federal Reserve (Fed) policy variables in the short term, causing fluctuations, the bullish momentum has not shown signs of weakening based on chip sentiment and capital flow.
"Bitcoin soars past $122,000! The bears are crushed with 'liquidations of $588 million'" This article was first published on (Blockchain Client).
