Biggest Short Squeeze in Years Triggers Massive Liquidation Event, Bitcoin To Surge Soon

The post Biggest Short Squeeze in Years Triggers Massive Liquidation Event, Bitcoin To Surge Soon appeared first on Coinpedia Fintech News

Cryptocurrencies, including Bitcoin and Ether, surged on Tuesday after the US SEC asked exchanges to update regulatory filings for ether exchange-traded funds (ETFs). Bitcoin soared to $71,957, and Ether reached $3,720.80, levels last seen on April 9. 

This dramatic rise was driven by a massive short squeeze, resulting in the largest liquidation event since 2022. Meanwhile, bitcoin shorts valued at $1.4 billion are at risk of liquidation if BTC’s price reaches $74.3K.

Yesterday, Bitcoin’s price jumped over 8%, marking one of its best days in 2024 that caught the attention of investors and analysts alike. This surge was largely driven by a short squeeze, where a sudden price increase forced traders holding short positions to buy back Bitcoin to cover their losses. 

This buying pressure increases Bitcoin’s price movement, resulting in one of the most notable single-day performances in recent years. 

Short squeeze drives biggest liquidation event since 2022 on #Bitcoin

“During the day, around US$259 million in sales contracts were liquidated, which ended up generating significant cash buying pressure.” – By @caueconomy

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