TL;DR
- Bitcoin broke above $113,000, setting a new all-time high and catching many traders betting against it off guard.
- Derivatives market liquidations tied to BTC reached $328 million, with $319 million lost in short positions after a massive short squeeze.
- The market remains bullish, but the speed of the rally raises the risk of further liquidations if Bitcoin continues its climb without pause.
Bitcoin has shattered its previous records once again, breaking past $113,000 and setting a new all-time high that caught much of the market by surprise.
At the time of writing, Bitcoin (BTC) is trading at $113,552, posting a 3.7% gain over the last 24 hours. Its trading volume jumped 55%, surpassing $67 billion, as the asset continues a steady, uninterrupted uptrend over the past several days.
The sharp price spike triggered a wave of liquidations in derivatives markets. The latest data shows Bitcoin-related liquidations hit $328 million, with short positions taking the heaviest losses. Traders betting against the rally lost around $319 million, while long positions absorbed roughly $9.9 million in liquidations.
Ethereum followed the upward momentum, climbing to $2,829, posting a daily gain of over 6%. Still, Bitcoin continues to dominate market attention, driven by surging trading volumes and an expanding market capitalization.
The breakout revealed that many traders underestimated the strength of Bitcoin’s upward momentum, getting caught in a short squeeze that deepened losses. This dynamic accelerated liquidations and increased volatility across the crypto market. Although sentiment remains bullish, the speed of these moves suggests more mass liquidations could follow if BTC sustains its momentum.
Bitcoin Could Climb Higher, but Volatility Looms
Current market conditions favor these spikes in volatility. Rising institutional demand, the emergence of new financial applications, and sustained interest from retail investors fuel a landscape where pullbacks are limited and rallies face few obstacles.
For now, attention centers on BTC next technical levels and the market’s ability to hold these valuations without a sharp correction. The expectation for new highs remains, though it’s accompanied by a level of volatility that demands caution from traders using leveraged positions
