Bitcoin reaches a new high, short positions suffer heavy losses with over 1 billion dollars in liquidations in 24 hours.

After a long period of consolidation below the historical high (ATH), Bitcoin has finally made a strong breakthrough, setting new price records for two consecutive days. This breakthrough rise of the crypto asset ancestor has, as usual, sparked a bullish wave across the entire crypto market, with various alts also jumping significantly.

Gate market shows that BTC once broke through $117,000, currently reported at $115,973.0, with a 24-hour rise of 4.36%.

Alts rise strongly, SUI performs particularly well

Many alts have even outperformed Bitcoin. Ethereum (ETH) has risen about 6.47% in the past 24 hours. Among mainstream coins, Sui (SUI) has performed particularly well, with a rise of over 10% during the same period.

The derivatives market is in turmoil: short sellers are being crushed, with liquidations exceeding $1 billion.

With the strong rise in the market, derivative investors betting on a market downturn (shorting) have naturally suffered heavy losses.

According to CoinGlass data, there has been a large-scale liquidation (margin call) in crypto assets derivatives exchanges in the past 24 hours, with over 230,000 people liquidated globally. Here are the key data overview:

• Total Liquidation Amount: 11.3** billion USD**
• Short liquidation ratio: 10.1million USD ( accounts for approximately 89% of the total liquidation amount )
• Liquidation Amount for Bulls: 120 million USD
• Main Coin Settlement Amount:

  • Bitcoin (BTC) liquidation: approximately $590 million (mainly for shorts)

  • Ethereum (ETH) liquidation: close to $245 million (mainly for shorts)

    

Key Insight: This large-scale liquidation event clearly shows that the market bears faced extreme squeezes (Data Source: CoinGlass).

Is Liquidation Becoming the Norm in Crypto? Leverage and Volatility are Double-Edged Swords

Large-scale liquidation events like this one are not uncommon in the crypto assets field, due to the high volatility of token prices and the ease of obtaining high-leverage trading. Just in the past few weeks, several significant short squeezes have already occurred.

Open Interest Changes: Are New Longs Quickly Entering After Liquidation?

However, according to data from the analysis company Glassnode, the performance of Bitcoin's Open Interest after this event is different from the past. The Bitcoin "Open Interest" indicator tracks the total amount of currently open Bitcoin-related positions across all centralized derivatives platforms.

Typically, during large-scale liquidation events, the open contracts decrease as investors are liquidated or exit the market. This situation did indeed occur during the previous two short squeezes and in the early stages of this event.

Key Insights: Glassnode charts clearly show (see below) that despite open interest continuing to decline after the previous two rises, after the initial drop of this event, open interest quickly rebounded. This trend may indicate that new bullish positions are being rapidly established in the market.

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(The trend of Bitcoin open interest in the past few weeks | Source: Glassnode on X)

Summary: The crypto derivatives market liquidation triggered by Bitcoin breaking its historical high once again highlights the high risks of leveraged trading, especially the enormous risks faced by short-selling strategies in a strong bull market. Although shorts have suffered heavy losses, the rapid rebound of open contracts suggests that market bullish sentiment remains intact, and new funds are actively entering the market. Investors need to closely monitor market fluctuations and manage leverage risk cautiously.