Bitcoin $77K rally leaves bears bleeding as $585M in shorts wiped, highlighting a sharp disconnect between price action and market sentiment.
The leading cryptocurrency pushed past $77,000 for the first time in 11 weeks, triggering a wave of forced liquidations across derivatives markets.
Despite the upward momentum, traders continue to position for downside risk, signaling persistent caution.
The wider digital asset market advanced in tandem with Bitcoin’s move. Overall market capitalization increased by about 3% in the last 24 hours, reaching nearly $2.61 trillion.
Bitcoin liquidation data (Source: Coinglass)
Trading volume also picked up pace, rising 12% to $172 billion, indicating stronger activity and quicker shifts in positions.
Short liquidations dominate market shakeout
Data from CoinGlass shows that more than 164,000 traders were liquidated within a single day, with total losses reaching $747.8 million.
Short positions accounted for the majority of these losses, representing roughly 78% of liquidations. More than $585 million in bearish bets were wiped out as prices moved higher.
Bitcoin alone contributed about $378 million to total liquidations. Around $344 million of that came from short positions, indicating that traders had heavily bet against a price increase.
The largest single liquidation occurred on Hyperliquid, where a BTC/USD trade worth $15.75 million was closed.
The price surge has triggered what appears to be a short squeeze. As Bitcoin climbed more than 3% in 24 hours and approached $78,000, traders betting on lower prices were forced to buy back positions, which added further upward pressure.
Bearish sentiment persists despite the rally
Even with the rally, sentiment has not shifted significantly. Funding rates in perpetual futures markets remain negative, showing that leveraged traders are still leaning bearish.
This trend has persisted for about 46 consecutive days, marking one of the longest stretches since the FTX collapse in 2022. Options markets also reflect caution.
Traders are actively purchasing downside protection, with strong demand for put options at $60,000 and $50,000 levels. This behavior suggests that many participants expect potential volatility or a pullback.
Macro factors have contributed to the recent rally. Improved geopolitical tone between the United States and Iran supported a broader risk-on environment.
Equities moved higher, while oil and the US dollar weakened, creating favorable conditions for crypto assets.
Ethereum followed Bitcoin’s move and rose more than 3% to trade around $2,420. This increase led to $162 million in liquidations, with short positions accounting for about 87% of that total. Among altcoins, RaveDAO stood out with a 25% gain, trading near $21.69.
ETF inflows support price recovery
Spot demand is showing signs of recovery as Bitcoin has gained around 14% from its April lows.
This rebound appears to be supported by renewed inflows into crypto-linked exchange-traded funds. Weekly net inflows have exceeded $332 million.
On April 16, Bitcoin ETFs recorded $26.05 million in inflows, while Ether ETFs added $18.02 million, marking their sixth consecutive positive session.
BlackRock’s IBIT led with $81.71 million in daily inflows, pushing its cumulative total to $64.35 billion.
Grayscale added $16.67 million, while Morgan Stanley contributed $13.36 million. However, some funds saw outflows, including Fidelity and ARK.
Despite improving spot demand, leveraged traders remain cautious. The market continues to face a standoff between rising prices and bearish positioning. If short pressure builds further, additional squeezes could drive volatility higher in the near term.
