Short liquidations hit $602M as BTC rebounds

TLDR

Crypto derivatives saw roughly $600 million of short positions liquidated as Bitcoin (BTC) bounced back above 61,000 dollars after a sharp drop earlier in the week.

1. Around $602 million of liquidations in 24 hours were mostly shorts, with Ethereum and Bitcoin leading as BTC recovered toward the 61,000 to 62,000 dollar area.
2. The rebound was fueled by softer US jobs data and Federal Reserve comments that eased rate hike fears, amplifying a short squeeze in crypto derivatives.
3. The key watchpoints now are whether BTC holds above 60,000, ETF outflows slow, and upcoming macro data avoid shocks that could re-ignite downside pressure.

Deep Dive

1. Liquidation Scale And Mix

Data from CoinGlass cited in several reports shows crypto liquidations around short liquidations around $602 million over 24 hours, with roughly $400 million coming from short positions.

Ethereum briefly overtook Bitcoin as the largest contributor, with about $187 million in liquidations versus roughly $184 million for BTC, highlighting that the squeeze hit majors across the board, not just Bitcoin.

At the same time, BTC has rebounded into the low 61,000s, with 24 hour gains in the 1 to 3 percent range and total crypto market cap rising to about 2.13 trillion dollars, indicating a broad risk-on response rather than an isolated move.

2. Macro Drivers And Short Squeeze

The squeeze did not happen in a vacuum. Reports tie the rebound to softer US jobs data and Fed comments suggesting inflation risks have eased and reducing the perceived odds of near term rate hikes.

That macro relief encouraged traders to add risk and forced crowded shorts to cover as prices bounced, with derivatives data showing positive funding, rising open interest and large clusters of liquidations around the 61,000 to 62,000 dollar zone.

Fear and Greed readings have improved from extreme fear to fear, which fits a narrative of sentiment thawing but not yet fully bullish.

3. Levels, Flows, And Risks

Despite the bounce, spot Bitcoin ETFs continue to show spot Bitcoin ETF outflows around $294 million, extending Junes heavy redemptions and signaling that institutional flows have not yet turned decisively supportive.

Analysts highlight 60,000 as a key psychological and on chain support area, with resistance near 62,000 to 62,500 and deeper support zones around the low to mid 50,000s if the rally fails and liquidation pockets below are triggered.

For traders, the main near term risks are another macro disappointment or continued ETF outflows that could overwhelm the short squeeze effect and push BTC back into its recent downside range.

Conclusion

Short liquidations around $600 million show how quickly leveraged positioning can flip when macro sentiment improves, with bears squeezed as Bitcoin rebounded off recent lows.

Unless ETF flows and broader demand confirm this move, the current bounce remains a relief rally that could fade if BTC loses the 60,000 region or if upcoming economic data reintroduce rate hike fears.