Bitcoin’s sharp rebound from last week’s lows crushed short sellers, triggering $504 million in losses over 24 hours — the most in a single day since late April, according to CoinGlass. Bets on rising prices lost just $151 million by comparison.
The squeeze capped a volatile stretch for the world’s largest cryptocurrency. Bitcoin fell nearly 14% last week and briefly traded below $60,000, dragged down by Strategy’s first Bitcoin sale since 2022, the unwind in artificial-intelligence stocks, and a record run of outflows from spot Bitcoin exchange-traded funds.
Many traders piled into shorts near the lows. Then they got caught.
Bitcoin rebounded to a high near $63,800 on Sunday, according to CoinDesk data, and reached as high as $63,700 on Monday morning before retreating. Total liquidations across crypto reached about $655 million and hit more than 104,000 traders. Bitcoin positions accounted for $315 million of that total, and Ether positions accounted for $201 million.
The single biggest forced closure was a $12.3 million Bitcoin futures position on the exchange OKX. A liquidation occurs when an exchange automatically closes a leveraged bet that has moved too far against the trader.
The Middle East Pullback
The bounce lost some steam on Monday. Renewed strikes between Iran and Israel sent oil up more than 3% and Asian stocks sharply lower, with South Korea’s KOSPI falling almost 7%. President Donald Trump urged Israel not to retaliate further.
Bitcoin slipped back to around $62,900, still well above last week’s floor below $60,000. But the geopolitical uncertainty kept a lid on further gains.
Volatility is likely to stay high ahead of US inflation figures and a wave of major IPOs, including SpaceX.
The Technical Picture
Bitcoin is now hovering near a key 200-week moving average that often marks major cycle turning points. Market stress is easing as implied volatility retreats and speculative call options dominate Bitcoin options trading.
But the short squeeze was a reminder of how quickly sentiment can shift in crypto. Last week, the narrative was all about outflows, selling pressure, and a potential bear market. This week, short sellers are licking their wounds, and bulls are asking whether the bottom is in.
Nvidia CEO Jensen Huang, in Seoul for a separate event, called the broader tech sell-off a buying opportunity. For Bitcoin, the same question applies: is this a dead cat bounce or the start of a new rally?
The Bottom Line
Bitcoin’s rebound from below $60,000 to $63,700 triggered $504 million in losses for short sellers over 24 hours — the most since late April. Total crypto liquidations reached $655 million, affecting more than 104,000 traders. The squeeze followed a volatile week that saw Bitcoin fall nearly 14% on outflows from spot ETFs and Strategy’s first Bitcoin sale since 2022. Renewed Middle East tensions pulled Bitcoin back to around $62,900 on Monday.
