#MarketRebound

Bitcoin Price Surge Triggers Significant Short Squeeze, Liquidating Hundreds of Millions

In the past 24-48 hours, the Bitcoin market has experienced a substantial price surge, leading to the liquidation of a large volume of leveraged short positions. Reports from April 22nd and 23rd, 2025, indicate that hundreds of millions of dollars worth of Bitcoin short positions, with figures varying across sources but generally ranging from approximately $250 million to over $516 million, were wiped out as the price of Bitcoin climbed significantly, pushing towards and in some cases exceeding $90,000.

This event is a classic example of a short squeeze, where traders who had bet on a price decrease are forced to buy Bitcoin to cover their positions as the price rises. This increased buying pressure further fuels the upward movement of the price.

The mass liquidation suggests a notable shift in market sentiment, with bearish positions being overwhelmed by bullish momentum. This is further supported by observations of the Crypto Fear and Greed Index moving from a state of "fear" into "greed" territory.