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The rise in Bitcoin price to $104,000 leads to the liquidation of nearly $400 million in bearish Bitcoin bets, opening the door for further gains.
The rise followed the announcement of a trade agreement between the UK and record inflows into ETFs exceeding $40 billion.
May 9, 2025, 5:03 AM
The rise in Bitcoin price ends short selling. (CoinGlass)
What you need to know
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The price of Bitcoin rose by more than 3% to $102,500, leading to the liquidation of $400 million in short positions.
The rise followed the announcement of a trade agreement between the UK and record inflows into ETFs exceeding $40 billion.
The rapid rise in Bitcoin prices surprised traders, leading to the liquidation of large amounts of bearish short positions.
The leading cryptocurrency's value rose by more than 3% to $102,500 in the past 24 hours, surpassing $104,000 at one point, the highest level since January 31. This upward move came as President Donald Trump announced a comprehensive trade agreement with the UK, and cumulative inflows into exchange-traded funds (ETFs) reached a record high of over $40 billion.
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The broader market also rose, with the total market capitalization of all cryptocurrencies except BTC increasing by 10% to $1.14 trillion, the highest level since March 6, according to data source TradingView.
This led to a significant liquidation of declining short selling positions, or leveraged trading aimed at profiting from price losses. A position is liquidated or forcibly closed when a trader's account balance falls below the required margin level, often due to negative price movements. This prompts the exchange to automatically close the position to prevent further losses.
Nearly $400 million in short selling positions for Bitcoin were liquidated in the last 24 hours, marking the highest daily total since at least November, according to CoinGlass. At the same time, $22 million in long positions were also liquidated.
This significant imbalance indicates that leverage was heavily tilted towards the bearish side, and the rapid liquidation of short positions suggests that there may be more upside potential for the market in the future.
Omkar Godbole is an associate editor on the CoinDesk Markets team, based in Mumbai, and holds a Master's in Finance. He is a Certified Market Technician (CMT). Omkar previously worked at FXStreet, where he wrote research on currency markets, and served as a fundamental analyst in the currencies and commodities division at financial brokerages in Mumbai. Omkar holds small amounts of Bitcoin, Ethereum, BitTorrent, Tron, and DOT.
The broader market also rose, with the total market capitalization of all cryptocurrencies except BTC increasing by 10% to $1.14 trillion, the highest level since March 6, according to data source TradingView.
This led to a significant liquidation of declining short selling positions, or leveraged trading aimed at profiting from price losses. A position is liquidated or forcibly closed when a trader's account balance falls below the required margin level, often due to negative price movements. This prompts the exchange to automatically close the position to prevent further losses.
Nearly $400 million in short selling positions for Bitcoin were liquidated in the last 24 hours, marking the highest daily total since at least November, according to CoinGlass. At the same time, $22 million in long positions were also liquidated.
This significant imbalance indicates that leverage was heavily tilted towards the bearish side, and the rapid liquidation of short positions suggests that there may be more upside potential for the market in the future.
