Crypto News: Over $1B in Crypto Shorts Liquidated as Bitcoin and Ether Rally to New Highs

Bitcoin and Ether surged to fresh highs, triggering over $1 billion in crypto short liquidations. More than 232,000 traders were affected in the latest market shakeout.Crypto Market Liquidates $1B in Shorts as Bitcoin and Ether Hit New HighsA rapid surge in Bitcoin and Ether prices triggered over $1 billion in crypto short liquidations in the past 24 hours, marking one of the largest short squeezes of the year.According to CoinGlass, approximately 232,149 traders were liquidated, totaling $1.01 billion in forced closures across crypto markets. Bitcoin shorts accounted for the largest portion, with $570 million liquidated, followed by $206.9 million in Ether short positions.The shakeout followed Bitcoin’s second consecutive day of new all-time highs, climbing from $112,000 on Wednesday to $116,500 on Thursday. Ether also rallied sharply, reaching $2,990 — its strongest level in over four months.Market Cap Spikes, Analysts React to Short SqueezeThe total crypto market capitalization jumped 4.4% in 24 hours to $3.63 trillion, data from CoinMarketCap shows.Commenting on the market’s momentum, several crypto traders highlighted the intensity of the short squeeze:“Bears in disbelief,” said analyst Miles Deutscher on X.Trader Daan Crypto Trades labeled the event a “massive short squeeze on BTC & ETH.”Crypto observer Velo noted, “Lots of emails are being sent,” referencing the wave of forced liquidations.This liquidation event comes months after a larger shakeout on Feb. 3, when over $2.24 billion was liquidated amid macro concerns following a trade policy announcement by U.S. President Trump.Analysts Were Split Ahead of BreakoutEarlier this week, market sentiment was divided. On Tuesday, Bitfinex analysts pointed to a lack of follow-through strength as BTC hovered around $108,500. “Bulls are hesitant or unable to push prices significantly higher without fresh catalysts or clearer macro signals,” the analysts said.In contrast, Michael van de Poppe, founder of MN Trading Capital, had predicted on June 30 that an all-time high breakout was imminent, potentially within the week.Liquidation Risks Remain If BTC Pulls BackDespite the recent gains, some traders remain cautious. Roughly $2.11 billion in long positions are now at risk of liquidation if Bitcoin retraces to $112,000, highlighting the stakes involved if price momentum stalls.For now, the market appears to be in a momentum-driven rally, supported by capital inflows and derivative positioning. Whether the trend sustains or cools off will depend on broader risk sentiment and potential macroeconomic catalysts.