‘Bears in Disbelief’ — Over $1B in Crypto Shorts Liquidated as Bitcoin Surges to New Highs

The crypto market has just witnessed one of its largest liquidation events in months, as Bitcoin powered through resistance to reach fresh all-time highs — leaving hundreds of thousands of traders in the red.

According to data from CoinGlass, over $1.01 billion in short positions were wiped out over the past 24 hours, impacting 232,149 traders across major exchanges. The bulk of the liquidations were concentrated in Bitcoin and Ether, as both assets surged to multi-month peaks.

A Brutal Short Squeeze

The 24-hour short liquidation tally breaks down as follows:

• $570 million in Bitcoin shorts

• $206.93 million in Ether shorts

• The remaining ~$233 million spread across altcoins like Solana, XRP, and BNB

Bitcoin led the charge, surging from $112,000 on Wednesday to $116,500 by Thursday, setting new intraday highs for two consecutive days. Ether followed closely behind, peaking at $2,990 — inching closer to its psychological $3K mark for the first time since early 2022.

The combined crypto market capitalization jumped 4.4% in a single day, hitting $3.63 trillion, according to CoinMarketCap.

Bitcoin liquidations totaled $590.04 million over the past 24 hours with only $20.21 million being long positions. Source: CoinGlass

Related: Bitcoin Bulls Target $150K After Price Hits New All-Time High of $112K

Bears Caught Off Guard

Market participants — especially short-sellers — were stunned by the scale and speed of the move. Prominent analyst Miles Deutscher summed it up simply:

“Bears in disbelief.”

Daan Crypto Trades described the action as a “MASSIVE short squeeze on BTC & ETH,” while others like Velo joked about the aftermath:

“Lots of emails are being sent,” hinting at margin calls and exchange notifications hitting inboxes worldwide.

This event adds to a growing list of high-profile liquidation cascades in crypto. A larger one occurred on February 3, when over $2.24 billion in liquidations were recorded during a macro-driven panic tied to global trade tensions sparked by U.S. tariffs.

Traders Were Split Just Days Ago

Interestingly, the surge comes after a week of mixed signals in the market. Earlier this week, Bitfinex analysts noted a lack of bullish follow-through in BTC's price action, warning that the market appeared to be “losing momentum.”

“Bulls are hesitant or unable to push prices significantly higher without fresh catalysts or clearer macro signals,” Bitfinex said on Tuesday, as Bitcoin traded around $108,500.

In contrast, Michael van de Poppe, founder of MN Trading Capital, was among the few who forecasted the breakout:

“The inevitable breakout to an ATH on Bitcoin might even happen during the upcoming week,” he predicted on June 30.

As it turns out, the bullish camp was right.

The Crypto Fear & Greed Index held steady on Thursday at a “Greed” score of 71 out of 100, down two points from last week’s score of 73. Source: Alternative.me

Related: Crypto Investment Products See $1B Weekly Inflows as Ethereum Gains Momentum

What Happens Next?

With shorts cleared out, some analysts believe this could set the stage for a cool-off period or consolidation, especially if new macro catalysts don’t emerge.

Still, the pain may not be over. While bears are reeling, long traders are now under pressure to defend key support levels. Should Bitcoin fall back to $112,000 — Wednesday’s support — over $2.11 billion in long positions could be at risk of liquidation, according to CoinGlass.

This highlights the fragile balance in the leveraged crypto market, where rapid price movements in either direction can trigger cascading liquidations and wipe out millions in minutes.

Institutional Tailwinds May Be Fueling the Rally

The sudden surge isn’t occurring in isolation. Recent data shows over $1 billion in inflows into U.S.-based Bitcoin spot ETFs during July alone, signaling growing interest from institutional players.

Moreover, macro conditions — including dovish central bank sentiment and strong performance in U.S. equities — have provided a favorable backdrop for risk-on assets like crypto.

As Matthew Hyland, a technical analyst, noted earlier this week:

“BTC confirms a daily higher-high and confirms an end to the downtrend that started in late May. Bulls are in control.”