Bitcoin Short Squeeze Liquidates Over $300 Million
Bitcoin briefly touched $80,594, triggering a massive short squeeze that wiped out $301.93 million in bearish positions. Total crypto liquidations hit $370 million, with Bitcoin and Ether leading losses. The squeeze mirrors a $593 million event in April, signaling structural short pressure.
Quick Take
Bitcoin hit $80,594, sparking $370M in total crypto liquidations.
Shorts accounted for $301.93M, four times long liquidations.
Bitcoin alone saw $179M wiped; Ether traders lost $95M.
Analysts say BTC needs $85K consolidation to confirm breakout.
Market Impact Analysis
BullishShort squeeze forces bearish traders to close positions, potentially fueling further upside if resistance levels are breached.
Speculation Analysis
Key Takeaways
- Over $300M in short positions liquidated as Bitcoin briefly touched $80,594 early Monday.
- Total crypto liquidations hit $370M, affecting 97,235 traders — shorts accounted for four times the longs.
- Bitcoin saw $179M in losses; Ether traders bled $95M in the second such squeeze in two weeks.
- Negative funding rates throughout April primed a structural pattern of violent short unwinds.
- Analysts say Bitcoin must consolidate above $85,000 to confirm a sustainable breakout.
What Happened
Bitcoin punched through to $80,594, its highest print since late January, and in doing so, detonated a short squeeze of brutal precision. The crypto market saw $370 million in total liquidations over 24 hours. Bearish positions took the brunt: $301.93 million in shorts evaporated, more than four times the long liquidations. This wasn’t a random spike — it was the second mass short liquidation in two weeks, following a $593 million wipeout on April 18 when bitcoin rallied past $77,000. The pattern is hardening into a structural feature of this market.
The Numbers
CoinGlass data shows 97,235 traders were liquidated. Bitcoin alone accounted for $179 million of the carnage, while Ether traders lost $95 million. The single largest order was an $11.77 million ETH/USDT short on Binance. Short liquidations outpaced longs by a factor of four, underscoring how heavily tilted positioning was to the downside. The squeeze echoes the April 18 event, but this time, bitcoin’s push above $80,000 hit a psychological barrier, forcing even more capitulation.
Why It Happened
Bearish sentiment had dominated for weeks. Bitcoin perpetual funding rates remained negative throughout April, meaning shorts were paying longs just to stay in their positions. This created a powder keg. When bitcoin rallied, late-to-cover short sellers were forced to buy back at a loss, fueling a vicious feedback loop of rising prices and cascading liquidations. The dynamics were similar to the April 18 squeeze, but with the added tailwind of spot bitcoin ETF inflows — $153.9 million last week alone and $1.97 billion for the month, per SoSoValue.
Broader Impact
The repeated squeezes reveal a market structurally biased against shorts. If bitcoin can consolidate above $85,000, as FxPro analysts suggest, it could confirm a breakout and trigger further short covering across majors. Altcoins caught the bid: Ether rose 2.3%, XRP added 2.1%, and Dogecoin extended its weekly gains to 14.3%. The pattern may spill into a broader altcoin rally, especially if funding rates flip positive.
What to Watch Next
- Bitcoin’s ability to hold above $83,600 — and ideally break and consolidate above $85,000 — is critical for trend confirmation.
- Funding rates snapping positive would signal a shift in market structure and potential sustained upside.
- Spot ETF flows, particularly if Ethereum begins attracting fresh capital after three weeks of outflows.
This article is for informational purposes only and does not constitute financial advice.
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