Cryptocurrency, $750 Million 'Evaporated' in One Day...How Far Can Bitcoin (BTC) Short Squeeze Go?

▲ Bitcoin (BTC), Short Position/ChatGPT Generated Image

Major virtual assets such as Bitcoin (BTC), Ethereum (ETH), and XRP surged simultaneously, setting new multi-month highs. Short (sell) positions that had bet on price declines were sequentially force-liquidated, resulting in over $750 million in liquidations in a single day.

According to Cryptopotato on September 21 (local time), the total liquidation volume in the virtual asset market over 24 hours exceeded $756 million. Of this, approximately $650 million came from short positions, accounting for over 85% of the total liquidations. Over 136,000 traders who had excessively leveraged their positions expecting price declines incurred losses.

The rally was led by the market leader, Bitcoin. Bitcoin successfully rebounded from its weekly low of $75,000 last week and surged nearly $10,000 in just a few days. It broke above $85,000 during Monday's trading, reaching its highest price level in approximately eight months since late January.

Major altcoins also joined the sharp rebound rally. Ethereum rose 6% in a single day, stably reclaiming the $2,700 level. XRP also climbed over 7%, nearing a breakthrough of its key resistance level of $1.50. Buying interest spread across major virtual assets, including Solana (SOL), amplifying the market's bullish momentum.

A cascading short squeeze in the derivatives market strongly stimulated spot buying. With Bitcoin successfully stabilizing above $85,000, and Ethereum and XRP rallying alongside, attention is focused on how far the additional upward momentum in the overall virtual asset market will extend.

[Article Key Summary]

-Bitcoin (BTC) surpassed $85,000, setting a new high in 8 months since January.

-Positions worth $756 million were liquidated in 24 hours, with approximately $650 million coming from short positions.

-Ethereum (ETH) recovered $2,700, and XRP attempted to break $1.50, spreading the altcoin bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*