Key TakeawaysBitcoin tagged $80,594 -- its highest since January 31 -- triggering $370 million in total crypto liquidations across 97,235 traders in 24 hours, with $301.93 million coming from short positionsShorts were liquidated roughly four times as much as longs, with Bitcoin accounting for $179 million and Ether contributing $95 million; the largest single liquidation was an $11.77 million ETH/USDT short on BinanceThis is the second major short squeeze in two weeks -- a similar setup on April 18 wiped out $593 million in shorts as Bitcoin pushed past $77,000Bitcoin futures open interest has climbed to 763,350 BTC, up sharply from the May 1 low of 707,240 BTC, with CVD turning positive -- signaling buyers are driving price actionONDO surged 11% over 24 hours, breaking above its 90-day trading range as the Clarity Act yield compromise boosted regulatory clarity for real-world asset tokensFxPro analysts say Bitcoin needs to consolidate above $85,000 to confirm the breakout, flagging $83,600 as a key long-term trend line convergence levelBitcoin's break above $80,000 caught the crypto derivatives market badly positioned for the third time in recent weeks, triggering $370 million in total liquidations across 97,235 traders in 24 hours with short sellers absorbing the majority of the damage -- a pattern that is beginning to look less like a series of isolated events and more like a structural feature of the current market.Bitcoin briefly tagged $80,594 in early Asian trading Monday -- its highest print since January 31 -- before pulling back to trade around $79,851 at time of writing. Of the $370 million in total liquidations, $301.93 million came from short positions, according to CoinGlass data, with shorts liquidated at roughly four times the rate of longs. Bitcoin alone accounted for $179 million of the wipeout, with Ether traders contributing $95 million. The single largest liquidation was an $11.77 million ETH/USDT short on Binance.A Structural Short Squeeze PatternThe squeeze is the second of its kind in two weeks. A similar setup on April 18 wiped out $593 million in shorts as Bitcoin pushed past $77,000 on the back of Iran ceasefire reports. The repetition of the pattern points to a persistent structural dynamic: funding rates on Bitcoin perpetuals have been pinned negative for most of April, meaning short sellers have been paying longs to maintain their positions. Each time price pushes higher, the accumulated short positioning unwinds violently -- creating a self-reinforcing upside move that outpaces what spot demand alone would generate.The pattern is now well enough established that analysts are watching for a third iteration rather than treating each squeeze as a standalone event.Derivatives Positioning: Broadly Bullish With Pockets of ExcessBitcoin's futures open interest has climbed to 763,350 BTC, up sharply from the May 1 low of 707,240 BTC, suggesting renewed capital inflows into the market following April's end-of-month de-risking. The 24-hour cumulative volume delta has turned positive, meaning buyers are now driving trading activity through market orders rather than passive limit orders -- a shift from the defensive positioning that characterized much of late April.Ether's futures open interest has risen to 14.17 million ETH, its highest level since April 18, also backed by positive funding rates and positive CVD. Zcash is showing one of the strongest setups among major tokens, with open interest near a four-month high at 2.26 million tokens and positive funding rates around 7%.Not all markets look healthy. Monero and M token appear overheated, with funding rates surging above 60% -- a level that historically raises the risk of long squeezes if momentum stalls. FxPro analysts flagged the broader breakout as unconfirmed, noting that Bitcoin needs to consolidate above $85,000 for the move to be structurally validated. "The rising price and the downward-sloping 200-day moving average are actively converging with an important long-term trend line at $83,600. Consolidation above this level could further encourage traders, but we would prefer to see consolidation above $85,000 first," the firm said.Options Markets Signal Calm, Put Skew FadesDespite the sharp price action, options markets are signaling relative calm. Annualized 30-day implied volatility for both Bitcoin and Ether has remained subdued for over a month, consistent with a steady grind-higher rally rather than a volatility-driven spike. Ethereum's volatility index EVIV is approaching the 55% level -- a zone that has acted as a floor multiple times since 2024 and bears watching as a potential signal of a broader volatility pickup.On Deribit, put skews in both Bitcoin and Ether have weakened notably compared to a month ago, signaling reduced demand for downside protection and increased appetite for upside exposure via call options. The shift in options sentiment from defensive to constructive is one of the clearest indicators that the market's risk posture has changed since April's lows.Altcoins Join the RallyOther major cryptocurrencies participated in the move. Ether climbed 2.3% to $2,368, up 2.2% on the week. XRP gained 2.1% to $1.42. BNB added 1.9% to $630. Solana rose 1.4% to $85.14. Dogecoin was the week's standout performer, up 3.5% on the day and 14.3% on the week to $0.1119, extending a breakout that began last week alongside year-high open interest in DOGE futures.ONDO Leads RWA Token Rally on Clarity Act OptimismOne of the clearest beneficiaries of the Clarity Act stablecoin yield compromise is the real-world asset token sector. The compromise -- which shifts reward structures from a "buy and hold" to a "buy and use" model -- combined with growing regulatory clarity around tokenized assets, has driven a sharp rally in RWA tokens with Ondo Finance's ONDO leading the charge.ONDO surged 11% over 24 hours, breaking above its 90-day trading range as investors rotated into tokenized real-world asset exposure. TRU and PENDLE also posted gains. Ondo's total value locked stands at $3.57 billion with a market capitalization of $1.5 billion per DeFiLlama data. The rally comes alongside broadening institutional interest in RWA tokenization, with more than $30.9 billion in assets now tokenized on-chain according to RWA.xyz. Ondo also announced this week that it had tapped Broadridge Financial Solutions to add proxy voting and filings access for more than 250 tokenized stocks and ETFs -- a significant step toward institutional-grade governance for tokenized securities.ETF Flows Confirm Institutional DemandNet inflows into US spot Bitcoin ETFs reached $153.9 million last week per SoSoValue, capping an April that pulled in $1.97 billion -- the highest monthly total since October 2025. Ether ETFs moved in the opposite direction, recording $82.5 million in net outflows that ended a three-week inflow streak -- a divergence that may reflect profit-taking following Ether's strong April performance rather than a structural change in institutional sentiment.
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