Bitcoin jumps nearly 8% as short positions worth over $1.2 billion liquidate

The cascade of buying amplified the move, turning a modest gain into a sharper

Bitcoin rose 7.9% in the past 24 hours to trade around $77,100, touching an intraday high of $79,300. The gain pushed the weekly increase above 23%, marking one of the strongest single‑day rallies in recent weeks as market sentiment turned markedly bullish. The rally triggered a short squeeze, forcing traders who had bet against Bitcoin to close positions. Data shows that about $1.5 billion in crypto liquidations occurred across roughly 179,000 traders in the same period, with approximately $1.21 billion of those liquidations coming from short contracts. The surge follows a week of optimistic signals from Washington, where regulators hinted at a more accommodating stance toward digital assets, encouraging buyers to step in. Short Squeeze Mechanics Behind the Rally When Bitcoin’s price climbed past key resistance levels, automated stop‑loss orders on short positions were hit. This forced traders to buy back the asset to limit losses, adding upward pressure.

The cascade of buying amplified the move, turning a modest gain into a sharper rally as more shorts were squeezed out. How might the liquidation wave affect trader behavior going forward? The large scale of short liquidations may make traders more cautious about opening new bearish bets in the near term. Some market participants could shift toward neutral or long‑biased strategies, fearing another squeeze. However, if Bitcoin’s price stabilizes, fresh short interest could return, setting up potential future volatility. Analysts note that the recent bounce could signal a short‑term floor for Bitcoin, especially if macroeconomic conditions remain supportive. Continued inflows from institutional funds and clearer regulatory guidance may sustain upward momentum. Conversely, any renewed macro‑economic shock or stricter policy could quickly reverse the gains, underscoring the asset’s inherent volatility. Frequently Asked Questions What caused the short squeeze in Bitcoin?

The squeeze happened when Bitcoin’s price rose past levels that triggered stop‑loss orders on short positions. Traders were forced to buy