BTC rally triggers record short liquidations

TLDR

Bitcoins latest surge toward 70,000 triggered an extreme short squeeze, vaporizing over a billion dollars in bearish derivatives positions within minutes.

1. Data from multiple desks shows roughly $1.7$1.9 billion in crypto shorts liquidated over 24 hours, with about $1.1 billion in Bitcoin shorts alone.
2. The squeeze was sparked by a macro shock the U.S. Treasury doubling long-term bond buybacks plus range-break price action that forced leveraged bears to buy back.
3. Leverage in crypto derivatives remains elevated, so the main risk now is a whipsaw where crowded new longs face a reversal if macro or spot demand disappoints.

Deep Dive

1. Scale Of Liquidations

Analysts at K33 Research and derivatives trackers report that Bitcoin perp markets saw roughly $1.1 billion in short liquidations in a single day, described as the coins first-ever daily billion-dollar short liquidation volume on available exchange data, and part of the largest-ever daily wave of short liquidations.

Across all crypto, CoinGlass-based datasets cited by several outlets show between $1.7 and $1.9 billion in positions liquidated over 24 hours, with the bulk coming from shorts and more than $1.2$1.3 billion wiped out in about one hour during the sharpest part of the move.

At the same time, global derivatives open interest climbed from 396.38 B to 440.24 B in 24 hours, and BTC-specific 24h liquidation totals jumped over 1,300% according to derivatives summary metrics, underscoring how much leverage was in the system before the spike.

2. Drivers Of The Squeeze

The immediate spark was a bond-market surprise: the U.S. Treasury announced it would double long-term bond buybacks from $2 billion to at least $4 billion per operation, which pulled 30-year yields down from multi-decade highs and made risk assets more attractive. That macro shock is highlighted as the trigger in reports on the Treasury buyback expansion.

Price-wise, Bitcoin had been stuck in a tight range in the low-to-mid 60,000s. When it broke above key resistance zones in the mid-60,000s, leveraged shorts started hitting liquidation thresholds.

In a short squeeze, each forced closure makes the exchange buy back exposure at market prices. That buying pushes price up, which trips more liquidations in a feedback loop. Hourly data from CoinGlass referenced by Decrypt shows about $1.14 billion in shorts wiped out in a single hour, illustrating how compressed this loop was.

3. Risks And What To Watch

Even after the wipeout, derivatives open interest and leverage remain high, which means crowded new long positions could be vulnerable if spot buying fades or macro signals turn less supportive.

Key tactical zones many analysts are watching include support around the mid-60,000s and the resistance band near 69,00070,000, plus funding rates and open interest trends that signal whether fresh leverage is rebuilding on the long side. Upcoming central-bank and Treasury communications also matter, because another yield spike could cool risk appetite quickly.

Conclusion

Bitcoins rally turned heavy speculative short positioning into fuel, producing record-scale liquidations and a rapid move toward 70,000. That move was amplified by a macro catalyst in the U.S. bond market and a break of well-watched technical levels. The path from here depends on whether genuine spot demand and stable yields can support these prices; otherwise, the same leverage that powered this squeeze could set up an equally sharp reversal.