Crypto Liquidations Total $787M in 24h as Shorts Squeeze
Crypto contract liquidations spiked to $787 million in 24 hours, up from $555 million earlier, data from Coinglass shows. Shorts drove the surge, accounting for $718 million (91%) of total liquidations, while longs made up $69.1 million. Bitcoin led with $221 million in liquidations, followed by Ethereum with $184 million. This latest wave of crypto contract liquidations reflects a powerful short squeeze as rising prices triggered margin calls and forced liquidations. Traders should monitor open interest, funding rates and leverage ratios closely. Effective risk mitigation requires controlling position sizes and setting stop-losses amid continued market volatility.
Bullish
Massive short-side liquidations typically accompany a short squeeze, which exerts upward pressure on prices as traders buy to cover positions. The $718M in short liquidations shows that the rebound triggered margin calls, lifting Bitcoin and Ethereum prices in the short term, hence a bullish impact. Over the longer term, the high leverage ecosystem and potential for renewed liquidation waves can intensify volatility, so while the immediate market reaction is positive, traders should remain vigilant and employ proper risk controls to navigate possible price swings.