Bitcoin Liquidations Surge as BTC Breaks $110,000, Fueling Short Squeeze and Market Rally Amid US-China Trade Talks
Bitcoin liquidation events escalated as BTC surged above $110,000, leading to over $404 million in liquidations within 24 hours, with more than $320 million from short positions in just 12 hours. This price rally reflects a significant short squeeze, caused by overly leveraged short-sellers as revealed by on-chain data from Glassnode. The intensity of liquidations, which affected over 99,000 traders and major exchanges like Bybit, Binance, Gate, and HTX, signals extreme market volatility. Positive market sentiment was further bolstered by renewed US-China trade talks in London aimed at restoring critical mineral exports and easing long-term tensions, creating a broader risk-on environment. As a result, not only did Bitcoin rally, but altcoins such as Ethereum (ETH), Solana (SOL), Cardano (ADA), and Sui (SUI) posted strong gains. Hyperliquid (HYPE) outperformed with over 10% daily and 48% 30-day gains, while meme coins like Dogecoin (DOGE) registered mixed results, with DOGE remaining in a downturn. Tech and semiconductor stocks in US markets also showed moderate gains, though the crypto market’s volatility remains a key risk. Analysts highlight that strong institutional buying, improved macro conditions, and aggressive liquidation of shorts present bullish opportunities for traders. However, the persistence of high volatility requires strict risk management, as both bullish and bearish positions remain exposed to rapid market shifts.
Bullish
The rapid surge in Bitcoin’s price past $110,000 resulted in significant liquidations, particularly among short positions, illustrating a classic short squeeze and attracting new capital and bullish momentum. Bullish sentiment was further reinforced by positive macro news from US-China trade talks. Altcoins followed the upward trend, with strong gains across Ethereum, Solana, and other projects. Increased institutional participation and technical short squeezes have created a favorable environment for further upside, although high volatility means traders should remain cautious and practice robust risk management. Overall, current signals suggest a bullish short-term outlook for Bitcoin and the broader crypto market.