Crypto market surges as $400M in shorts liquidated

Bitcoin and altcoins soared, liquidating $370M–$415M in shorts in 24 hours. The rally, driven by easing geopolitical tensions and dovish Fed signals, sharply shifted market sentiment upward.

The cryptocurrency market saw a strong rebound as Bitcoin surged from a 10-day low of $76,200 to over $81,000 within hours. This rally was mirrored by major altcoins: Ethereum approached $2,500, BNB exceeded $720, and XRP jumped by up to 9% in a single day. The rapid price increase triggered a significant short squeeze, resulting in the liquidation of $370 million to $415 million in short positions across crypto derivatives in just 24 hours. Hourly liquidations peaked at $157 million, highlighting the intensity of the move. This surge followed a period of subdued trading and was fueled by easing geopolitical tensions and dovish signals from the Federal Reserve, which reduced expectations for an imminent rate hike. The wave of liquidations marked a swift shift in sentiment from bearish to bullish, leaving traders to question whether this momentum will persist or prove temporary.