Bitcoin reaches highest price since June as $3 billion in short bets liquidated
Bitcoin climbs to $72,000 for the first time since June
Bitcoin reached an intraday high of $72,408 on Thursday before settling near $71,423, marking a 3.07% increase for the day. This is the highest price Bitcoin has seen since June 2, when a sudden crash dropped its value below $68,000.
The recent rally, which began on Monday, has pushed Bitcoin’s price up by nearly 15% over the past two days. The surge has also triggered a wave of liquidations for traders who bet against Bitcoin’s price rising.
Over $3 billion in short positions wiped out
More than $3 billion in short positions—bets that Bitcoin’s price would fall—were liquidated across the crypto market in the last 24 hours. This forced closure of short trades affected over 190,000 traders, making it one of the largest short squeezes on record.
A short squeeze happens when a rising price forces traders who bet against an asset to buy it back to cover their losses. This buying activity pushes the price even higher, triggering more liquidations in a feedback loop.
Key numbers from the rally
- Bitcoin’s intraday high: $72,408
- Daily gain: 3.07%
- Total short liquidations in 24 hours: $3 billion
- Number of traders liquidated: over 190,000
- Price increase since Monday: nearly 15%
Why short sellers lost big
Short sellers borrow Bitcoin to sell it, hoping to buy it back at a lower price and pocket the difference. However, when the price rises instead of falling, exchanges force these traders to close their positions once their collateral can no longer cover the losses. This process is called liquidation.
The recent price surge began on Wednesday when Bitcoin first broke above $70,000. According to data from Coinglass, $2.85 billion in short positions were liquidated in the past 24 hours alone, adding to the total from the previous day.
What is confirmed
- Bitcoin reached $72,408, its highest price since June 2.
- Over $3 billion in short positions were liquidated in the past 24 hours.
- The rally has pushed Bitcoin’s price up by nearly 15% since Monday.
What is still unclear
The source does not explain the exact reason behind the recent price surge. While the liquidation of short positions contributed to the rise, other factors, such as market sentiment or external economic conditions, are not detailed.
Why this matters for crypto traders
The liquidation of short positions shows how quickly market dynamics can shift. Traders who bet against Bitcoin’s price rise faced significant losses, while those holding Bitcoin saw gains. This event highlights the risks of short selling in volatile markets like crypto.
Sources
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