Key Takeaways
- Bitcoin briefly topped $75,000 in Asian trading, gaining almost 8% in 24 hours and 18% over the week.
- About $1 billion in short positions were liquidated in the past 24 hours, following a roughly $3 billion liquidation day on Thursday.
- The latest rally is tied to easier Treasury market conditions and renewed support for the Clarity Act, adding to the bullish momentum.
Bitcoin extended its sharp recovery on Friday, climbing toward $75,000 as another wave of short liquidations pushed the broader crypto market higher.
During Asian trading hours, Bitcoin briefly moved above $75,500 overnight before settling around $75,000. The cryptocurrency was up nearly 8% on the day and nearly 18% over the week. Just two days earlier, Bitcoin was trading near $64,100.
The rally has been amplified by a two-day short liquidation total of around $4 billion. According to CoinGlass, approximately $1 billion in short positions were liquidated out of $1.23 billion total in the past 24 hours, involving more than 140,416 traders.
(Source: CoinGlass)
The latest liquidation wave followed roughly $3 billion in short positions being liquidated on Thursday, the largest single-day figure recorded since 2021. This brings the two-day total to around $4 billion.
The largest individual position that was closed in the latest session was a $25.13 million BTC trade on Hyperliquid.
Liquidation happens in the market when traders borrow to make a bigger bet than their money would cover. When the market moves against them, the exchange automatically closes the position before losses exceed the collateral.
These traders were betting Bitcoin's price would fall, but as prices rose instead, the exchange forcibly closed their trades. Each forced buy pushed the price higher, triggering a chain reaction of more liquidation.
Meanwhile, Ethereum added almost 5% to around $2,350, while Solana rose more than 5% to just below $90.
The market’s momentum strengthened after the U.S. Treasury increased long-term bond buybacks from $2 billion to $4 billion per operation. This eases conditions across the roughly $30 trillion Treasury market.
Bitcoin also gained amid renewed political attention around the CLARITY Act, including support from President Donald Trump. BTC market cap has now reached $1.5 trillion, although it remains roughly 40% below its record above $126,000 set last October.
Improved risk appetite and the liquidation cascades both contributed to the current rally. The next market move seems increasingly important for traders.
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