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Bitcoin’s relentless upward momentum has pushed the world’s largest cryptocurrency above $91,000, triggering one of the largest waves of liquidations seen this month. In the last 24 hours alone, more than $241 million in short positions have been wiped out across major exchanges, as leveraged traders betting on a price decline were forced out of their positions during Bitcoin’s rapid ascent. The market has entered a powerful phase of bullish acceleration, and the liquidation data reveals just how aggressively traders had positioned themselves against the rally.
The surge above $91,000, a key psychological and technical threshold, marks another defining moment in Bitcoin’s 2025 performance. have spiked as traders attempt to understand the forces driving this sudden upward pressure. While liquidation events are common in highly leveraged markets, the magnitude of this one underscores a deeper shift in sentiment: traders are rapidly abandoning bearish assumptions as the market continues to defy downward expectations.
Several macro and market-specific factors have contributed to Bitcoin’s rise. The return of liquidity to global financial markets, easing interest-rate expectations, and strong inflows into Bitcoin spot ETFs have combined to create a steady upward trend. Institutional investors, previously hesitant to increase exposure during consolidations, are now accelerating their positions as Bitcoin reclaims momentum. Recent ETF inflow data shows consistent demand throughout the past week, which has played a crucial role in absorbing selling pressure and fueling short squeezes.
As Bitcoin climbed, trading activity on futures and perpetual markets surged. Exchanges recorded aggressive short covering, resulting in cascading liquidations as prices moved higher. Liquidation engines across centralized platforms automatically closed short positions that no longer met margin requirements, pushing prices even higher as contracts were forcefully bought back.
This self-reinforcing mechanism a classic short squeeze often drives rapid and sharp market movements, particularly in periods of thin resistance and rising spot demand.
The broader crypto market also reacted strongly to Bitcoin’s breakout. Altcoins experienced renewed confidence, though their performance varied. Assets with strong narratives, including Ethereum, Solana, and XRP, saw moderate gains, while smaller-cap tokens reacted with heightened volatility. Nevertheless, Bitcoin remains the clear leader of the current trend, and its dominance has continued to strengthen as liquidity concentrates around the largest and most institutionally supported digital asset.
The liquidation data also reflects the dangers of excessive leverage in crypto markets, where rapid price movements can erase positions in seconds. Traders who assumed Bitcoin was overbought at lower levels especially in the $88,000 to $90,000 range found themselves trapped in aggressively leveraged shorts. As Bitcoin advanced into new territory, those shorts became unsustainable, accelerating the liquidation cycle and adding fuel to the price rally.
For long-term investors, the surge past $91,000 signals increasing confidence that Bitcoin may be entering a new accumulation phase driven by institutional inflows, scarcity narratives, upcoming halving effects, and broader market liquidity recovery. Analysts note that Bitcoin’s ability to reclaim and sustain new highs amid macro uncertainty reflects a maturing asset class with structural demand and reduced sensitivity to traditional market headwinds.
As the market adjusts to the fallout from the liquidations, traders are now watching for whether Bitcoin can sustain support above the $90,000 zone, which many view as a new battleground for sentiment. If the crypto market continues to receive strong ETF inflows and macro conditions remain favorable, further upside pressure could emerge, possibly triggering additional liquidation clusters from traders still attempting to short the rally.
Bitcoin’s climb above $91,000 is more than just a price event it is another reminder of the asset’s ability to defy bearish predictions and force dramatic repositioning across derivative markets. The $241 million liquidation wave highlights the powerful combination of institutional demand, market structure, and trader psychology that continues to shape Bitcoin’s path in 2025.
FAQs
1. How much was liquidated as Bitcoin surged above $91,000?
Approximately $241 million in short positions were liquidated across major exchanges within 24 hours.
2. Why did these shorts get liquidated?
Bitcoin’s rapid price increase forced leveraged short positions to close automatically, creating a cascading short squeeze.
3. What caused Bitcoin to rise above $91,000?
A combination of ETF inflows, improving macro liquidity, institutional demand, and forced short covering contributed to the rally.
4. How did the broader crypto market react?
Altcoins experienced renewed momentum, but Bitcoin led the move with the strongest gains and the largest inflow activity.
5. Is more volatility expected?
Yes. With many traders still trying to short the rally, further liquidation clusters could occur if Bitcoin continues rising.