BTC rebound triggers nearly $500M short liquidations

TLDR

Bitcoin's sharp rebound into the upper 60,000s triggered a major short squeeze that wiped out a large chunk of bearish futures bets.

1. Across crypto, over $575 million in leveraged positions were liquidated, including over $468 million in shorts, with Bitcoin and Ethereum bearing most of the hit.
2. The squeeze followed crowded bearish positioning, a bounce from the low 60,000s, bullish Nvidia earnings, and renewed spot Bitcoin ETF inflows.
3. Leverage has reset, but on chain and derivatives data still look like a relief rally rather than a confirmed new uptrend, with key support levels to watch below.

Deep Dive

1. Size Of The Liquidation Wave

Over the past 24 hours, total crypto liquidations reached about $575.59 million, of which more than $468.53 million came from short positions, according to Coinglass data reported by BeInCrypto and Yahoo Finance as over $468 million in shorts.

Bitcoin (BTC) alone accounted for roughly $195 million in short liquidations, while Ethereum (ETH) saw around $175 million of shorts cleared in a total of more than $200 million liquidated.

Other analyses put the move at about $576 million in futures positions wiped out, with roughly $470 million from shorts, which matches the headline description of nearly $500 million in short positions.

CoinsKid derivatives data shows perpetuals open interest down about 5 percent over 24 hours, consistent with a broad deleveraging rather than fresh leverage piling in.

2. Why Bears Were Trapped

Heading into the move, BTC had sold off into the low 60,000s, with negative sentiment and heavy short positioning in futures and perps.

When spot buyers stepped in around 64,000 to 65,000 and price reclaimed resistance zones near 66,000 to 68,000, cascading margin calls forced shorts to buy back, amplifying the rally and driving BTC briefly toward 69,000 to 70,000.

Macro and flows helped: Nvidias blowout earnings lifted tech stocks and risk assets, while spot Bitcoin ETFs saw net inflows of roughly $250 million, both highlighted in the Bitcoin rebound coverage and similar reports.

3. Relief Rally Or New Trend

On chain analysts like Glassnode, cited by CryptoSlate, describe this as stabilization rather than full recovery, emphasizing that nearly $500 million in short positions were cleared but that BTC still trades in a wide 60,000 to 69,000 range.

A large share of supply is still held at a loss, ETF flows remain net weaker over recent weeks, and accumulation metrics from large holders are subdued.

CoinsKid market data shows perpetual open interest down sharply and the Fear and Greed index stuck in extreme fear, which fits a mechanical squeeze in a fearful market rather than a euphoric breakout.

Conclusion

Bitcoins rebound and the nearly 500 million dollar flush of short positions are primarily a story of crowded leverage getting cleared rather than a clear confirmation of a new bull leg. The next phase depends on whether fresh spot and ETF buying follows this deleveraging or whether BTC slips back below key support zones, which would turn this squeeze into just another relief rally inside a broader consolidation.