Glassnode: Record Short Liquidation Ignites Bitcoin Rally to $79K

The biggest single-day short liquidation in Glassnode’s data history triggered a bitcoin rally that burned through liquidation clusters on its path, with 85% of all liquidations during the squeeze window hitting the short side.

The move consumed 86% of the modelled liquidation fuel in its corridor, leaving a dense shelf of short liquidation levels at $82K–$86K overhead and a band of long liquidation fuel at $60.5K–$62.4K below.

ETF inflows funded the move

U.S. spot Bitcoin ETFs recorded $2.23 billion in net inflows over the squeeze window without a single outflow day, the strongest seven-day intake of the year.

Glassnode noted:

“Its best single day was the largest creation since January 14, 2026, and price reclaimed the Short-Term Holder Cost Basis on the way.”

Daily turnover averaged $2.4 billion, roughly half the January–February pace.

Leverage burned off, not rebuilt

Futures open interest shrank 11% in coin terms across the window, and liquidated shorts were not replaced with new contracts.

The report described the dynamic:

“The perpetual funding rate barely left its neutral baseline through the entire move and still printed occasional negative hours afterward, so the rally was never chased with fresh longs.”