$161 Million in Bitcoin Shorts Liquidated As BTC Surges to $57k

A surprise 11% Bitcoin price pump over the last 24 hours inflicted more than $161 million worth of pain on short sellers in blistering liquidations. The broader crypto market wipeout eliminated over $268 million worth of bets betting against further gains.

TLDR

• Over $161 million worth of Bitcoin shorts were liquidated in the last 24 hours as BTC price surged nearly 11%
• More than $268 million in total crypto short positions were wiped out from the broader market spike
• Bitcoin hit a new 2024 high around $57,000 before cooling off slightly, with analysts calling it the start of a new bull run
• Massive inflows into new Bitcoin spot ETFs are providing buying pressure, with $515 million entering on Feb 26
• Additional short squeezes are expected as market momentum builds and BTC heads towards its April halving event

Bitcoin rocketed from below $52,000 on Monday morning to notch a 2024 high around $57,000 by the evening, based on TradingView data. The move marked Bitcoin’s largest single day percentage gain since October 2021. And leveraged traders were caught wrong-footed.

Data from CoinGlass shows $161 million worth of short positions betting on a Bitcoin price drop were liquidated yesterday, with nearly $70 million eliminated in just one hour midday Monday as BTC exploded higher. Critical support at $50,000 was left firmly in the rearview.

The carnage spread beyond just Bitcoin shorts too. Bearish Ethereum traders saw $44 million of their positions for forced selling in the past day when ETH bounced almost 5% in tandem with Bitcoin’s rise.

Analysts have pointed to several factors driving the newfound momentum behind the crypto market’s flagship asset. New capital inflows into U.S. based Bitcoin spot exchange-traded funds (ETFs) have ignited animal spirits. Over $515 million flowed into funds on February 26th alone based on data from market analytics firm Farside Investor.

And Bitcoin’s pending “halving” event in April, which will reduce issuance rates by 50%, has revived speculation of a supply-side pricing shock. Analyst Alex Adelman said the decisive BTC breakout signals the “de facto start of a new bull market” that opens the door to tremendous upside ahead.

With the technical and fundamental stars aligning and Bitcoin erasing shorts in surprise volatile moves, traders may need to brace for further pain. Particularly if institutional spot ETF inflows persist while retail fear of missing out builds. The market appears set to leave behind the risk averse mood of 2022.

The post $161 Million in Bitcoin Shorts Liquidated As BTC Surges to $57k appeared first on Blockonomi.