Bitcoin and Ether surge to new highs, causing over $1 billion in cryptocurrency short liquidations. More than 232,000 traders were affected in the latest market shakeup. The cryptocurrency market liquidated $1 billion in short positions as Bitcoin and Ether reached new highs. The rapid surge in Bitcoin and Ether prices resulted in over $1 billion in cryptocurrency short liquidations in the past 24 hours, marking one of the largest short squeezes of the year. According to CoinGlass, approximately 232,149 traders were liquidated, totaling $1.01 billion in forced closures across cryptocurrency markets. Bitcoin short positions accounted for the largest share, with $570 million liquidated, followed by $206.9 million in Ether short positions. The shakeup occurred after Bitcoin reached new all-time highs for two consecutive days, rising from $112,000 on Wednesday to $116,500 on Thursday. Ether also surged, reaching $2,990 - its strongest level in over four months. Market capitalization surged, analysts reacted to the short selling. The total cryptocurrency market capitalization increased by 4.4% in 24 hours to $3.63 trillion, data from CoinMarketCap shows. Commenting on the market's upward trend, some cryptocurrency traders highlighted the intensity of the short selling: "Short sellers don't believe," analyst Miles Deutscher said on X. Trader Daan Crypto Trades called the event a "massive short selloff on BTC & ETH." Cryptocurrency observer Velo noted, "A lot of emails are being sent out," referring to the wave of forced liquidations. This liquidation event comes a few months after a larger liquidation on February 3, when over $2.24 billion was liquidated amid macro concerns following U.S. President Trump's trade policy announcement. Analysts divided before the breakout. Earlier this week, market sentiment was divided. On Tuesday, Bitfinex analysts pointed out the lack of strength following BTC hovering around $108,500. Analysts noted, "Bullish speculators are hesitant or unable to push prices significantly higher without new catalysts or clearer macro signals." In contrast, Michael van de Poppe, founder of MN Trading Capital, predicted on June 30 that a breakout to new all-time highs was imminent, potentially happening within the week. Liquidation risks remain if BTC pulls back. Despite recent gains, some traders remain cautious. Approximately $2.11 billion in existing long positions are at risk of being liquidated if Bitcoin returns to $112,000, highlighting the risks involved if the price momentum stalls. Currently, the market appears to be in a momentum-driven rally, supported by incoming capital and derivative positions. Whether this trend will continue or cool off will depend on broader risk sentiment and potential macroeconomic catalysts.
