Crypto bears absorbed more than $1.48 billion in short liquidations as Bitcoin surged toward $80,000, extending a powerful market-wide rally fueled by Treasury buybacks and forced buying.
BTC$76,671.00+7.30%Crypto bears are taking heavy losses as a powerful market rally triggered more than $1.48 billion in short liquidations over the past 24 hours.
Total crypto liquidations reached approximately $1.48 billion, affecting more than 1,74,281 traders. Short positions accounted for the overwhelming majority of the losses, with roughly $257.94 million in long positions liquidated.
The latest wave of liquidations comes after Bitcoin extended its rally toward $77,000, while Ethereum and XRP posted even stronger percentage gains.
Bitcoin was responsible for the largest share of the latest liquidation event.
BTC climbed approximately 8.8% to $77,000, after briefly reaching $75,000, its highest level since May 27. The move triggered around $830.73 million in Bitcoin liquidations, most of which came from short positions.
Ethereum followed with approximately $206.88 million in liquidations, while XRP accounted for another $41.94 million.
XRP was among the strongest performing large-cap assets, gaining about 16.2% to $1.26. Ethereum also advanced 10.1% to $2,315, outperforming Bitcoin on the daily timeframe.
The latest Bitcoin rally also builds on the previous market-wide short squeeze. Altcoin Buzz previously reported on the surge above $71,000 and the more than $3 billion in crypto short liquidations that fueled the move.
Related: Bitcoin Breaks $71K as $3B Short Liquidations Fuel Rally Amid Trump’s CLARITY Act Push.
The latest squeeze can be traced back to developments in the U.S. Treasury market.
On August 19, the Treasury announced that it would double the size of its long-term debt buybacks to at least $4 billion per operation. The move was designed to provide additional liquidity to longer-dated Treasury securities.
The announcement helped improve risk sentiment and contributed to a sharp Bitcoin recovery from the $64,000 area.
As Bitcoin moved higher, traders holding leveraged short positions began hitting liquidation levels. Exchanges automatically closed those positions by buying back the underlying assets, adding further buying pressure to the market.
That created a familiar feedback loop: higher prices triggered short liquidations, forced buying pushed prices higher, and the resulting rally triggered more liquidations.
The process has now continued for several sessions.
Bitcoin's latest move has brought it close to another important technical level.
BTC briefly reached $79,000, narrowly below the $80,000 True Market Mean referenced in the market analysis. A sustained break above that area could strengthen the bullish momentum and potentially open the door to higher levels.
However, the size of the recent rally also creates a risk of profit-taking.
Bitcoin is now up approximately 18.4% over the past week, although it remains around 40% below its October 2025 record of $126,080.
The key question is whether spot buyers can replace the leveraged traders whose short positions have now been wiped out.
The strength is not limited to Bitcoin.
XRP has emerged as one of the strongest major cryptocurrencies during the latest recovery, rising more than 16% in 24 hours to around $1.26. The move extends a broader XRP rally that has attracted increased trading and derivatives activity.
Ethereum has also benefited from the improving market sentiment, gaining more than 10% to reach approximately $2,315.
The combination of Bitcoin strength and strong altcoin performance suggests that the latest move is broader than a single-asset short squeeze.
The latest liquidation wave has removed a significant amount of bearish leverage from the market, which could temporarily reduce selling pressure.
However, liquidations alone do not guarantee that the rally will continue. The next phase will depend on whether fresh spot demand enters the market and supports prices after leveraged shorts have been cleared.
If buyers maintain control, the current short squeeze could evolve into a broader market recovery. If momentum fades, however, traders who bought into the rapid rally could begin taking profits.
For now, the message from the derivatives market is clear: crypto bears have been caught on the wrong side of one of the strongest rallies of the month.
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