A dramatic surge in major cryptocurrencies over the past 12 hours has resulted in the largest wave of liquidations since May 2025, wiping out over $460 million in short positions. Bitcoin soared past $111,000, while Ethereum and Solana also saw significant increases, catching many traders off guard and triggering substantial losses.
A Market Upside—And Downside
The cryptocurrency market experienced a whirlwind as Bitcoin (BTC) leapt to over $111,000. Ethereum (ETH) wasn’t far behind, climbing nearly 7% to surpass $2,700. Solana’s SOL mirrored this upward trajectory, advancing beyond $158. This surprising rally left over 114,000 traders liquidated, with losses topping a staggering $527 million, according to Coinglass data. Out of this, a hefty $463 million came from short positions—bets that prices would fall—while long positions accounted for the remaining $64 million. The largest single liquidation saw a $51.5 million short on HTX’s BTC-USDT pair go up in flames. This aligns with recent reports of $280 million in crypto shorts liquidated as Bitcoin tops $110K.
Liquidations are a crucial aspect of leveraged trading. When traders borrow funds to amplify their positions and fail to meet margin requirements as prices move against them, exchanges step in to close these positions forcibly. This can exacerbate price movements and lead to further liquidations, creating a cascade effect that magnifies the initial price shift.
The Reflexive Cycle
The recent wave of short liquidations may have accelerated the upward price movement, forcing additional traders to exit their positions in a cascading fashion. This reflexive dynamic often turns liquidation data into a potent trading signal. Sharp spikes in liquidations, particularly from one side of the market, can indicate local tops or bottoms, depending on timing and direction.
Some savvy traders exploit this by positioning themselves around these events, betting on short squeezes or long flush-outs when the data starts to skew. As Mikael Johansson, a crypto analyst at a leading financial firm, noted, “These liquidation events, when combined with volume and price action, often confirm the strength of a trend or signal its exhaustion.” This sentiment echoes concerns raised in Bitcoin rallies to $109.7K but pro traders question BTC’s price momentum.
Despite Bitcoin’s modest weekly gain of just 2%, Ethereum and XRP have surged by more than 7%, suggesting that this rally is being driven by major coins outside of Bitcoin. The broader market’s resilience is raising eyebrows, especially considering the volatile conditions seen this year.
Historical Context and Future Implications
Historically, sharp liquidation events have marked significant turning points in the crypto markets. In May 2025, a similar event saw a massive unwinding of positions, setting the stage for a period of volatility. Traders and analysts are now left pondering whether this current rally is the beginning of a sustained bull run or simply a short-lived spike.
As the market digests these developments, attention will likely turn to other metrics for clues about future movements. “The real question,” says Samira Khan, a blockchain strategist, “is whether this momentum can be maintained or if we’re heading for another correction.”
The crypto space is no stranger to dramatic swings, and this latest episode is a reminder of the inherent risks—and opportunities—within the market. As always, traders must navigate these turbulent waters with caution, with an eye on both technical indicators and broader market trends.
Looking ahead, the focus will likely remain on the major players like Ethereum and Solana, which have shown impressive resilience. However, the unpredictability of the crypto market means that surprises are always just around the corner. As we move deeper into 2025, only time will tell if this rally has staying power or if another wave of liquidations will soon follow.
Source
This article is based on: Bears Lose $400M to Liquidations, Largest Since May, as BTC, ETH, SOL Spike Higher
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
