The cryptocurrency market experienced significant turmoil as traders betting against Bitcoin faced massive liquidations, triggered by an impressive price surge that propelled Bitcoin to a new all-time high of over $81,000. Recent data indicated that in just a 12-hour span, approximately $180 million worth of short positions were wiped out across various cryptocurrencies.
Bitcoin ’s spike came in the aftermath of a major political event, with prices rising more than 6% and reaching $81,358. Short positions, which involve traders betting that the price will drop, were particularly affected. The most pronounced losses included $67 million in liquidated short positions for Bitcoin , followed by $23 million for Dogecoin and $21 million for Ether. Concurrently, longs also suffered, with a total liquidation of $228 million, bringing the overall liquidation figure, encompassing both shorts and longs, to around $682.72 million over a 24-hour period.
Among these liquidations, one notable case involved a single user on the crypto exchange OKX, who faced a loss of $15.56 million while converting Bitcoin to Tether. Additionally, the previous month saw a significant liquidation event, particularly on November 6, where nearly $350 million in short positions were liquidated as Bitcoin dipped momentarily below $69,000.
Market dynamics shifted as Bitcoin ’s market dominance recovered to above 59%, nearing its October peak of 60%, the highest level observed since April 2021. Overall sentiment has turned optimistic, driven largely by political changes in the U.S., including the favorable positioning of pro-crypto figures within Congress.
As the price rally continues, analysts noted that the recent surge reflects a reinvigorated interest from retail investors, suggesting a re-engagement with the cryptocurrency space following political developments. The foundation laid by months of consolidation has prepared traders for these new price levels, potentially signaling a robust future for Bitcoin and the overall market.
