Bitcoin surged toward $97,000, its highest level since mid-November, triggering a wave of forced liquidations across the crypto derivatives market as traders betting against the rally were squeezed out of their positions. Over the last 24 hours, data shows nearly $800 million worth of crypto positions were liquidated, with short sellers bearing the brunt of the losses as prices climbed.
Bitcoin accounted for roughly $380 million of those liquidations, followed by Ethereum (~$230 million) and other major assets. Meanwhile, broader market gains saw ETH, XRP and Solana also trade higher on the day.
Market analysts point to a combination of renewed bullish momentum, driven in part by optimism around legislative progress on the U.S. Clarity Act — a market structure bill aimed at clarifying crypto regulation — and increased institutional interest as key factors behind the price surge. As prices pushed higher, leveraged traders with short positions were forced to close at a loss, amplifying price volatility across major cryptocurrencies.
“Short squeezes like this show how quickly market sentiment can flip in crypto,” said one derivatives strategist focused on Bitcoin futures. “When key levels break to the upside, forced liquidations and increased buying pressure can compound and accelerate moves — especially when institutional flows and retail momentum align.”
This liquidation event underscores how leveraged trading risks intensify during sharp price climbs, particularly in a market where speculative positions remain elevated and catalysts — both regulatory and macro — can shift sentiment rapidly.
