Short Squeeze Triggers $400M Liquidations, Three-Month High
A major short squeeze resulted in $322 million in 24-hour liquidations, fueling a broad cryptocurrency rally driven by renewed ETF inflows.Summary
Short-position liquidations in the crypto market hit $322 million over 24 hours, the highest since Black Friday, leading to a significant rally across major digital assets. This surge was largely fueled by renewed institutional momentum, evidenced by $471 million in net inflows into US spot Bitcoin ETFs on January 2. Short liquidations accounted for 77.67% of the total $414.65 million in liquidations, catching many bearish traders off guard, especially on exchanges like HTX. The price action, which saw Bitcoin approach $93,700 and altcoins like XRP surge significantly, was amplified by a cascading effect where forced short covering drove prices higher. Analyst Ardi noted that nearly $1 billion in shorts were liquidated over recent days, and the market is now balanced, with $94,500 being a key level to watch for continued upside.
(Source：BeInCrypto)