Bitcoin reached a peak of approximately $80 270, surpassing the psychological threshold of $80 000. This rapid price movement triggered a significant short squeeze across various leveraged trading platforms.
Total cryptocurrency liquidations exceeded $510 million over a 24-hour period, affecting more than 119 000 traders. Short sellers bore the brunt of these losses, accounting for $330 million of the total liquidated positions.
Within a single hour of the rally, short liquidations reached over $329 million, with Bitcoin-specific short positions contributing $86 million to that figure. The remaining liquidations involved bets against other digital assets.
Market sentiment was influenced by shifting expectations regarding Federal Reserve interest rate policy. According to CME FedWatch, the probability of a rate hike declined to 50.4 percent, creating a more favorable environment for risk assets.
