Bitcoin surges 8% as short squeeze ripples across battered crypto market

By David Pan

Bitcoin’s bruised market suddenly sprang back to life, surging nearly 8 per cent and unleashing the biggest wave of short liquidations in records going back to 2021. 

More than $1 billion of Bitcoin short positions were liquidated in about an hour, according to data from Coinglass, underscoring the speed of a reversal that pushed the largest cryptocurrency to around $69,500, its highest since early June and its biggest gain since March.

Traders saw fresh reasons to buy. President Donald Trump met with crypto executives from firms including Coinbase Global Inc., Payward Inc. and Blockchain.com Group Holdings Inc. 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 $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 $75,000 region,” said Axel Rudolph, chief technical analyst at investing and trading platform IG.

The size of the move is also a sign of how one-sided the market has become. After months of selling and a descent into the low $60,000s, bearish positioning had piled up in an asset with a long history of overshooting in both directions. Once prices turned higher, forced buying from short sellers helped accelerate the rebound, producing the kind of abrupt snapback that frequently follows prolonged, one-way moves in crypto.