A broad crypto rally led by ether’s (ETH) 20% surge triggered more than $750 million in short liquidations in the past 24 hours, marking the highest single-day total since 2023 for bearish trades.
Data from CoinGlass shows that over 84% of the total liquidations came from shorts, with major altcoins experiencing jumps of 10%–20% in the span of a few hours starting late Thursday.
Ether led the charge with a remarkable 20% rise, pushing past $2,000 for the first time since early March. Other notable cryptocurrencies, including DOGE and Cardano’s ADA, surged by more than 10%, fueled by bullish sentiment and momentum trading dynamics. Additionally, Solana’s SOL, BNB, and XRP registered gains of at least 7%.
Liquidations occur when an exchange forcibly closes a trader’s leveraged position due to insufficient margin. This scenario arises when a trader is unable to meet the margin requirements for a leveraged position, meaning they do not possess enough funds to maintain the trade.
Large-scale liquidations often indicate market extremes, reflecting potential panic selling or buying. A cascade of liquidations can signal a market turning point, suggesting that a price reversal may be imminent due to an emotional overreaction in market sentiment.
Notably, the recent uptick in crypto markets coincided with Bitcoin’s surge above $100,000 on Thursday, bolstered by positive sentiment stemming from a trade deal between the U.S. and the UK.
The late Thursday liquidation event ranks among the most severe since Bitcoin’s ascent to $93,000 in March, during which bears lost over $550 million in a weekend squeeze. In April, a similar rally in ETH and DOGE resulted in the erasure of $500 million in shorts, but this latest upheaval surpassed both occasions, signaling a renewed appetite for risk in the market.
According to Coinglass data, the largest share of losses occurred on exchanges Binance and OKX, which together accounted for over $500 million in liquidations. ETH alone was responsible for more than $310 million, while bitcoin-tracked futures led with $375 million in liquidated positions.
The short squeeze on ETH unfolded after the asset had been trading within a range for several weeks amidst declining institutional interest and retail sentiment. However, Ethereum’s recent Pectra upgrade appears to be reinvigorating trader confidence and encouraging renewed investment in the asset.
