Bitcoin Soars Toward $70,000 as Shorts Suffer 'Double Squeeze,' $2.7 Billion in Liquidations Sets Record

The cryptocurrency market rebounded sharply on Wednesday (19th), with Bitcoin aggressively approaching the $70,000 mark—its highest level since early June this year. This rapid short squeeze caused bearish traders to suffer approximately $2.7 billion in historic losses within just 24 hours.

In fact, Ethereum showed even stronger momentum over the past 24 hours, surging 18%. As of Thursday afternoon at 13:37 Taipei time, its price reached around $2,250.

According to CoinGlass data, a total of 172,108 traders were forcibly liquidated across the network during this volatility, with total liquidation value nearing $3 billion. Short positions accounted for 92% (approximately $2.7 billion), while long losses amounted to only $257 million—resulting in a loss ratio exceeding ten to one.

This single-day short liquidation volume has surpassed the previous record of $2.47 billion set during the historic market crash on October 10, 2025. The squeeze was highly concentrated and swift—over $1 billion in Bitcoin shorts were liquidated within just one hour. Cumulative daily liquidations included $1.42 billion in Bitcoin, $1.13 billion in Ethereum, and $104.67 million in Solana. The largest single liquidation occurred on the Hyperliquid exchange, amounting to $48.8 million.

Beyond macro-level short squeezes, robust institutional capital inflows provided solid support. Data from SoSoValue shows that on August 19 (Eastern Time), Ethereum spot ETFs recorded a single-day net inflow of $189 million, marking the third consecutive day of positive flows. BlackRock’s ETHA led with $122 million in net inflows, followed by Fidelity’s FETH with $36.5352 million. The total net asset value of Ethereum spot ETFs has now reached $12.063 billion, representing 4.51% of Ethereum’s total market cap.

Analysts point to shifting macroeconomic conditions as the primary catalyst. The U.S. Treasury's plan to double its bond buyback ceiling caused Treasury yields to drop sharply, significantly improving market risk appetite and triggering a chain reaction of short liquidations.

However, analysts also warn that this rally, driven primarily by 'forced buying' rather than 'new demand,' is relatively fragile, and some gains may be retraced. Going forward, key levels to watch include whether Bitcoin can hold the $69,000 support line and if Ethereum can sustain prices above $2,000.