Bitcoin Surpasses 118K And Triggers Over $1 Billion in Short Liquidations

The latest Bitcoin (BTC) rally has socked the crypto market! Bitcoin (BTC) has surprised everyone and surged past $118K mark. This has triggered over $1.13 billion in liquidation within a single day, which is the largest short-side wipeout of 2025 as of yet.

According to the data released by on-chain, the short sellers bore most of the losses. Their losses accounted for $1.01 billion in total liquidation. This current surge reflects the aggressive shift in the crypto market sentiment. This is all due to Bitcoin’s long-short ratio tipping 52% in favor of bullish positions. It indicates a growing confidence in a continued upward momentum.

Bitcoin Surges Past $118K

The latest rally was led by Bitcoin futures. The Bitcoin futures alone are worth $590 million in liquidation, followed by Ether (ETH) futures worth $241 million. The broader altcoin market also saw gains, with XRP, Ether, Dogecoin, and Solana’s SOL rising by up to 5%, sustained by renewed investor optimism and macroeconomic cues.

The market was highly disrupted, as shown by the fact that more than 237,000 merchants were forced to sell. The biggest liquidation was a BTC-USDT short on HTX, which was worth an unbelievable $88.5 million. The big losses and high number of short positions show how many traders bet against the rally and lost.

Bybit had the most wiped-out positions among exchanges, with $461 million in losses, most of which were on the short side. Next came Binance and HTX, which had $204 million and $193 million, respectively. When bearish traders can't meet their margin requirements, these forced liquidations happen. They typically generate a reflexive cycle that makes prices go up faster as shorts have to cover.

The surge comes on the back of renewed optimism in crypto markets. Analysts cite signals of potential regulatory movement in the U.S., improved sentiment in traditional equities, and increasing institutional interest as key catalysts. Bitcoin’s price momentum has also reignited bullish narratives across altcoins, suggesting a broader shift toward risk-on assets.

As Bitcoin sets fresh all-time highs, the market watches closely for sustained bullish momentum. However, analysts warn that after such a massive short squeeze, volatility could spike, meaning both opportunity and risk remain high for traders navigating the current landscape.