Bitcoin's relentless bull rally has inflicted staggering losses on short sellers, with cumulative liquidations reaching $7.88 billion since February, according to data from CryptoQuant. The aggressive upward momentum has repeatedly punished traders betting against the flagship cryptocurrency, particularly those who opened short positions near the $80,000 level.
CryptoQuant's analysis reveals that the recent surge past $81,000 was not a simple trend move but an active liquidity hunt. After Bitcoin breached $77,000, positions anticipating a decline were quickly liquidated, creating cascading buying pressure that propelled prices higher. The exchange Binance accounted for a significant share of these forced closures.
The "Bitcoin Trend Pulse" indicator remains firmly in the upper 1.0 range, historically a precursor to prolonged bull cycles similar to those seen in 2021 and 2023. Short-lived bearish phases have only amplified the structural uptrend. On a single day in recent weeks, $737 million in shorts were liquidated; later, $608 million was wiped out in a month, and $175 million was erased yesterday with no major news catalyst.
Looking ahead, CryptoQuant outlines two scenarios: either the rally continues to squeeze out remaining shorts, or surging fear of missing out (FOMO) prompts a flood of new long positions. Analysts warn that a heavy buildup of longs could later trigger long liquidations, potentially leading to sharp corrections once the current momentum fades.
