Bitcoin Surges Over 8% Triggering Short Liquidations, Ethereum Jumps 18%: Here's Why

TradingKey - The cryptocurrency market staged a strong rebound, with Bitcoin (BTCUSD) surging over 8% intraday to approach $70,000, reaching its highest level since early June and recording its largest single-day gain since March. Meanwhile, Ethereum (ETHUSD) briefly broke above $2,300 and is currently trading at $2,263.6, up over 18%.

Source: CoinGlass

Data from CoinGlass showed that in just about an hour, short liquidations in the cryptocurrency market exceeded $1 billion. Bitcoin had previously undergone months of consolidation, at one point falling to just above $60,000, as bearish positions accumulated in the market. When prices suddenly turned upward, a large number of shorts were forced to cover, further accelerating the rally and triggering a classic short squeeze.

Meanwhile, the U.S. Treasury's expansion of long-term bond buybacks, declining U.S. dollar and Treasury yields, and improving expectations for U.S. digital asset regulation collectively provided fresh support for risk assets.

Overcrowded Short Positions Turn Rally Into Short Squeeze

In the preceding months, Bitcoin continued to pull back from its peak above $126,000 in October 2025, at one point dipping to just above $60,000. Almost every market rebound ended in failure as selling sentiment gradually took dominance, prompting a large number of traders to use leverage to bet on further price declines.