Cryptocurrency markets experienced a dramatic surge in volatility over the past 24 hours, with total liquidations surpassing $635 million. The majority of these losses over $560 million came from traders holding short positions, underscoring increasing pressure on bearish sentiment.Leading the charge was Bitcoin (BTC), which soared past $94,000 to mark a 6.3% daily gain. According to data from CoinGlass, nearly $293 million in BTC short positions were wiped out during the rally. Ether (ETH) followed suit, climbing nearly 10% to trade around $1,787, triggering over $109 million in short liquidations.
Binance saw the highest liquidation volume among exchanges, accounting for $18.7 million in the last four hours alone 78% of which stemmed from short positions. Bybit and OKX also reported elevated liquidation activity, signaling broad-based volatility across crypto trading platforms.
Analysts Point to Short Squeeze Potential
Market watchers are increasingly pointing to a potential short squeeze, a phenomenon where a rapid price spike forces short-sellers to close their positions, further propelling prices upward. Crypto analyst Mister Crypto noted that significant liquidity is “building up around the $100,000 level,” suggesting the market could be poised for another breakout.
Sharing a Binance BTC/USDT Liquidation Heatmap, the analyst highlighted mounting liquidation orders near the $100K mark an indication that many traders may be forced to buy back into the market if prices continue to climb.
Bitcoin Hits 45-Day High
Bitcoin touched a 45-day high of $94,236 on Tuesday, buoyed by bullish sentiment and ongoing institutional interest. The rally has rekindled speculation around a possible six-figure price target, though opinions remain divided.
Skepticism Remains Over $100K Target
Not all experts are convinced that a $100,000 BTC is imminent. Vincent Liu, Chief Investment Officer at Kronos Research, cautioned that broader macroeconomic developments will heavily influence the asset’s trajectory.
“Bitcoin’s climb to $94K reflects renewed global optimism, but its path to $100K remains uncertain,” Liu told Cointelegraph. He pointed to the upcoming Federal Reserve’s FOMC meeting on May 6, ongoing trade discussions with India and China, and potential shifts in U.S. monetary policy as key variables.
“Any easing in tariffs or a dovish Fed could fuel further gains, while hawkish moves or geopolitical uncertainty may stall momentum,” Liu added.
