Bitcoin surged toward $72,000 on Thursday as a sharp rally forced more than $2 billion in cryptocurrency short positions out of the market, intensifying a powerful short squeeze across digital assets.
Data cited in current market reports showed about $3.64 billion in crypto positions liquidated over 24 hours. Short positions accounted for roughly $2 billion of that total, while long liquidations stood near $200 million. Bitcoin led the move with approximately $1 billion in liquidations, followed by Ethereum at about $900 million.
Bitcoin Rally Accelerates
Bitcoin climbed above $71,000 after gaining more than 10% over two sessions. The move marked its highest level since early June and brought the cryptocurrency within striking distance of the closely watched $72,000 threshold.
The rally followed a combination of macroeconomic and industry catalysts. The U.S. Treasury increased planned purchases of longer-dated government bonds, helping push Treasury yields lower. Lower yields can improve investor appetite for riskier assets such as cryptocurrencies.
Positive sentiment also strengthened after a White House meeting with cryptocurrency executives, where President Donald Trump urged lawmakers to advance legislation supported by the digital-asset industry.
Short Sellers Face Mounting Pressure
The rapid advance created a feedback loop in derivatives markets. As Bitcoin rose, exchanges automatically closed leveraged short positions, forcing traders to buy Bitcoin to c over losses. Those purchases added further upward pressure and helped accelerate the rally.
The scale of the liquidation wave highlights the risks of crowded bearish positioning. On Aug. 19 alone, more than $1 billion in Bitcoin short positions were liquidated within roughly an hour as the cryptocurrency pushed above $69,000.
Bitcoin’s approach toward $72,000 now puts a major technical and psychological level in focus. A sustained break above that area could trigger additional short covering, while failure to hold the gains could expose the market to renewed volatility.
