BTC rebound triggers $320M short liquidations

TLDR

Bitcoins rebound from below 60,000 to the mid 60,000s triggered a concentrated short squeeze that wiped out roughly 320 million dollars of crypto shorts in minutes.

1. As BTC snapped back toward 64,000, exchanges liquidated about 320 million dollars in short positions in a single 15 minute window.
2. Across the full day, short liquidations reached roughly 500540 million dollars, flipping the pain from over?leveraged longs last week to late bears this week.
3. The move looks like a sharp relief rally rather than a confirmed trend reversal, so leverage, ETF flows, and the 60,000 support area remain key to watch.

Deep Dive

1. How Big The Short Squeeze Was

Bitcoin (BTC) rebounded from a recent low near 59,100 dollars and spiked back toward 64,000 dollars, liquidating about 320 million dollars in crypto shorts within 15 minutes as per one detailed report on the move. That article notes the jump came off the years lows, catching traders who had added shorts near the bottom offside.

Other outlets put the broader 24 hour tally higher, with one piece citing around 504 million dollars in short liquidations over the same period as BTC reclaimed the 63,000 zone, the largest short wipeout since late April for bearish traders. Another analysis pegs Sundays short liquidations at roughly 539 million dollars, also a seven week high as BTC bounced 7.5 percent from about 59,353 to 63,800 dollars in a weekend squeeze.

2. Leverage, Deleveraging, And Sentiment

These liquidations follow a brutal prior week where long positions had already absorbed over 1.5 billion dollars in losses as BTC fell below 60,000 and erased around 200 billion dollars in total crypto market value. One recap highlights that long?side wipeout before the current bounce flipped pressure onto shorts.

Derivatives data show open interest in perpetuals over the last week is still down double digits even after a modest 12 percent uptick in the last 24 hours, pointing to net deleveraging rather than a fresh leverage build. Average funding rates remain slightly negative, consistent with a bearish tilt that set up the squeeze.

On the sentiment side, a widely followed fear and greed index sits in Extreme fear around the mid?teens, while total crypto market cap is only up about 0.6 percent over 24 hours but down more than 10 percent on the week.

3. Relief Rally Or New Trend

Several analysts quoted in these reports stress that the rebound does not yet confirm a new uptrend. Spot bitcoin ETFs recently saw around 1.7 billion dollars in weekly outflows, and some market commentary points to record withdrawals over multiple sessions as capital rotated into AI equities and upcoming IPOs.

Macro and geopolitical headlines also played a role, with traders reacting to potential de?escalation signals in the Middle East. If those hopes fade, or if ETF outflows persist, fresh downside tests toward recent lows remain possible.

Practically, market participants are watching three things: whether BTC can hold the 60,000 area on pullbacks, whether open interest and funding rebuild in a healthier way rather than in crowded shorts, and whether ETF flows stabilize or flip back to net inflows.

Conclusion

Bitcoins latest spike is a textbook short squeeze, triggered by a rebound off deeply oversold levels that erased roughly 320 million dollars of shorts in minutes and roughly half a billion dollars over the day. It has relieved some downside pressure and flushed out late bears, but with sentiment still fearful and ETF flows negative, the move looks more like a relief rally than a confirmed trend change, making leverage metrics, ETF flows, and the 60,000 support region the key signals to monitor next.