- Bitcoin broke above $108K, triggering a major short squeeze that liquidated $359K in shorts within hours, up 240% from earlier levels.
- The rapid surge from $105K to $107K caught short sellers off guard, flipping market sentiment from bearish to bullish.
- 96.6% of all Bitcoin holders are now in profit, fueling FOMO and renewed buying pressure.
- With Bitcoin near its $111.9K all-time high, analysts anticipate a potential retest of record levels amid growing momentum.
Bitcoin has ignited a fresh wave of bullish momentum, surging past the $108,000 mark in a dramatic short squeeze that liquidated hundreds of thousands in bearish positions. According to new data from on-chain analytics firm Glassnode, short liquidations soared by over 240% within just four hours, rising from $105,000 to $359,000 based on the 24-hour simple moving average (SMA). This sharp increase in liquidations signals a major shift in market sentiment following a week of bearish trends.
The rally comes after Bitcoin experienced a swift and unexpected price jump from $105,000 to $107,000 earlier today. The move caught short sellers off guard, forcing a cascade of liquidations as leveraged traders were pushed out of the market. This phenomenon, commonly referred to as a short squeeze, occurs when a rising asset price compels traders with short positions to close their trades, often by buying back the asset, further driving up the price.
Just days ago, funding rates across the crypto market remained negative, reflecting a bearish bias. Many traders had bet on the further downside due to repeated price dips across major digital assets. However, Bitcoin’s latest surge has upended that narrative, flipping market sentiment back into bullish territory almost overnight.
Bitcoin Hits $108K as FOMO Builds
As of press time, Bitcoin is trading at $109,895, posting a 3.98% gain in the last 24 hours, according to data from CoinMarketCap. This move has sparked growing FOMO (Fear of Missing Out) among traders and investors, with many rushing to re-enter long positions to avoid missing potential further gains.
Glassnode’s data also reveals a striking statistic: 96.6% of all Bitcoin in circulation is now in profit. This indicates that nearly all holders are currently seeing gains, a powerful psychological factor that could further fuel buying pressure if the uptrend continues. Conversely, the small minority of holders still in the red may soon return to profitability if Bitcoin maintains or extends its upward trajectory.
The latest surge follows Bitcoin’s all-time high (ATH) of $111,970.17 recorded in May. With the current momentum building, analysts believe another attempt to breach this historic price level may be on the horizon. The combination of short liquidations, renewed investor optimism, and rising profitability paints a bullish outlook for the near term.
While crypto markets remain inherently volatile, today’s developments demonstrate just how quickly sentiment can shift. Traders who were betting on Bitcoin’s decline are now repositioning themselves, and the influx of new buyers suggests that confidence in the asset’s long-term strength remains strong.
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