Bitcoin Rockets to Nearly $114K, Triggering $550 Million in Liquidations

Massive Short Squeeze Propels BTC Higher as Traders Rush to Cover Positions

Bitcoin has staged an explosive rally, surging to just under $114,000 within the last 24 hours. The sharp upward move sparked widespread liquidations in the derivatives market, wiping out roughly $550 million in leveraged positions — most of them short bets against BTC.

Major Short Squeeze Unfolds

The sudden price spike caught bearish traders off guard, with liquidations cascading across major exchanges. As Bitcoin’s momentum intensified, funding rates spiked and open interest briefly dipped, indicating that overleveraged positions were rapidly unwound.

This latest surge follows several days of tight consolidation near the $111K level, where Bitcoin repeatedly tested resistance before breaking higher. Analysts note that the move was likely fueled by both technical breakout triggers and renewed demand from institutional buyers who have been accumulating during recent dips.

Market Sentiment Flips Bullish

With Bitcoin reclaiming ground toward $114K, sentiment across crypto markets has shifted back toward optimism. On-chain indicators show renewed inflows to long positions and rising activity among whale wallets, suggesting increased confidence in the ongoing uptrend.

At the same time, exchange balances continue to decline, indicating reduced selling pressure and a growing preference for long-term holding. If momentum continues, analysts expect BTC could soon attempt to retest its previous all-time highs — though overextended leverage remains a potential risk.