Bitcoin’s surge sees record US$2.7 bil of crypto shorts wiped

(Aug 20): Bitcoin’s bruised market suddenly sprang back to life, surging nearly 8% and unleashing the biggest wave of short liquidations in records going back to 2021.

More than US$1 billion (RM4.04 billion) of bitcoin short positions were liquidated in about an hour, according to data from Coinglass, underscoring the speed of Wednesday’s reversal that pushed the largest cryptocurrency to around US$69,500, its highest since early June and its biggest gain since March. Across crypto tokens, a record US$2.7 billion in bearish bets were wiped.

Bitcoin held its gains in Asia on Thursday, 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 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 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.