Crypto liquidity index grows and analysts expect a massive breakout could liquidate $8 billion in shorts if Bitcoin$BTC price reclaims $90,000 price.
The crypto market seems like it is finally on its way to a real recovery, one that will propel the entire market towards higher prices in the coming weeks and months ahead. In particular, analysts are marking this expected pump to come from the growing crypto liquidity index. Specifically, they expect a massive breakout that could liquidate $8 billion is BTC short when Bitcoin price hits $90,000.
Crypto Liquidity Index Grows
Q1 of 2025 was meant to usher in greater ATHs for Bitcoin (BTC) and welcome a flourishing altseason where altcoin prices were set to skyrocket and set new ATHs of their own. However, Q1 ended up becoming a bearish quarter with every month closing in lower red closes. In turn, the price of BTC fell drastically and the altcoin prices followed suit falling to lower lows and taking bullish sentiment down with it.
One of the biggest reasons attributed to the fall was lack of liquidity. Several reputed analysts said the bull phase was delayed due to market conditions but the biggest reason was low liquidity, and it is liquidity that moves markets. Thus, these seasoned analysts accumulated or held their assets as liquidity could have arrived at any moment. The most recent event was Trump’s tariff war, the start of the tariff led to high liquidations in both the stock and crypto markets.
This move led to major FUD with analysts expecting much greater dips of 80% – 90% price dumps in the coming days. Instead, Trump announced a suspension of tariffs for 90-days on every tariff except those aimed at China. As a result, the crypto and stock market books with total market cap in crypto pumping to $2.5 trillion and $4 trillion flowed into the US stock market. This has brought back market sentiment to bullish levels, and with it a massive flow of liquidity.
$8 Billion in Bitcoin Shorts Are Set to Liquidate if BTC Reclaims $90,000
As we can see from the post above, that the liquidity index is shaping up just like the previous run and that the last time this happened, the crypto market experienced a massive breakout.
Presently, with the similar bullish indicators, this analyst believes that a bullish breakout is on the horizon. He says that these are just the starting stages of a much greater run and looks forward to seeing what’s next for crypto.
According to CoinMarketCap analytics, the price of BTC is at $83,000. If the bullish pump continues for the pioneer crypto asset, and the price of BTC reclaims $90,000 price targets, then the crypto market will likely see a $8,000,000,000 worth of Bitcoin shorts liquidated when BTC hits $90,000.
