Crypto surge triggers record US$2.7 billion of short liquidations

The crypto market suddenly sprang back to life, sending Bitcoin up nearly 8 per cent and unleashing the biggest wave of short liquidations in records going back to 2021.

More than US$1 billion of Bitcoin short positions were liquidated in about an hour, according to data from Coinglass, underscoring the speed of the Aug 19 reversal that pushed the largest cryptocurrency to around US$69,500.

That is the highest since early June and its biggest gain since March. Across crypto tokens, a record US$2.7 billion in bearish bets were wiped out.

Bitcoin held its gains in Asia on Aug 20, trading around US$69,450 at 1pm in Singapore. 

The upswing came as US President Donald Trump met with crypto executives from firms including Coinbase Global, Payward and Blockchain.com Group Holdings at the White House, adding to optimism around an administration that has sought to promote a more industry-friendly regulatory framework for digital assets. Falling borrowing costs added another tailwind.

“The move towards US$70,000, triggered by short-covering, suggests buyers are regaining confidence, although the rally now faces a crucial test of whether it can sustain momentum and challenge the US$75,000 region,” said Axel Rudolph, chief technical analyst at investing and trading platform IG.