The cryptocurrency market has seen a significant shift as Bitcoin has surged past $91,000, marking a remarkable recovery following a dip below $84,000 just a day prior. This upward movement has resulted in over $300 million in short liquidations, highlighting the volatility that has returned to the market.
Analysts from the Kobeissi Letter have suggested that this price action could be indicative of Bitcoin”s largest daily gain since May 2025. The rapid increase in Bitcoin”s value coincides with significant positions being liquidated, predominantly from short sellers. In the last hour alone, approximately $140 million in short positions were liquidated, starkly contrasting the mere $3 million in long liquidations.
The recent volatility has affected various cryptocurrencies, not just Bitcoin. Ethereum has experienced a 9% increase, pushing its value to $3,000, while XRP and SOL have also seen gains of over 7% and 12% respectively. Notably, ADA has emerged as a top performer among larger-cap altcoins, rising by 15% to $0.43.
According to data from CoinGlass, the total value of liquidated positions has reached nearly $380 million, with shorts accounting for the majority of this figure. Notably, Bitcoin shorts constitute over half of the total, followed closely by $91 million in ETH shorts. The largest single liquidation was recorded on Bybit, amounting to $13 million.
Market analysts remain optimistic about Bitcoin”s trajectory as long as it maintains above critical support levels, particularly the $83,000 mark that was tested recently. Furthermore, Bitcoin”s rally could gain momentum if it surpasses the next key resistance level at $91,800, which is just above its current price.
