Bitcoin short squeeze pushes price toward $62,000 as bears lose $281M
In brief
- Bitcoin rose 2.5% weekly to $61,360 amid short squeeze liquidations
- Ether climbed 9.7% to $1,702; Solana gained 18.6% to near $80
- Short liquidations totaled $281 million in 24 hours, nearly double long losses
- Total forced closures across 95,690 traders reached $440 million per Coinglass
- Weaker U.S. jobs data reduced rate-hike expectations, supporting risk assets
Bitcoin and Ether lead the rebound
Bitcoin traded around $61,360, up 2.5% over seven days, per CoinDesk data. Ether rose 4.2% in 24 hours to about $1,702 and is up 9.7% on the week, while Solana held near $80 with a weekly gain of 18.6%, the strongest among the majors.
The move higher inflicted outsized pain on bearish traders. Ether led the damage to bears at $157 million in wiped positions against Bitcoin's $103 million. The largest single liquidation was an $18.2 million Ether position on Hyperliquid.
How the squeeze unfolded
When shorts are forced to close, they buy back the asset, and that buying pushes prices into the next tranche of shorts, the loop that turns a modest bounce into a squeeze.
Total forced closures across 95,690 traders amounted to $440 million, according to Coinglass data. The cascade of forced buys compounded upward pressure and created the conditions for the squeeze to accelerate.
Macro backdrop supports crypto
The rebound drew support from a shift in rate expectations. U.S. June employment data came in weaker than expected on Thursday, which trimmed bets that the Federal Reserve will raise rates again and weakened the dollar against most major currencies. Gold climbed for a third day as rate-hike bets faded.
Equities rallied in tandem. Asian shares rallied after two days of tech-led losses, with South Korea's Kospi climbing 3% after flirting with a technical bear market. The rotation away from rate-sensitive assets eased pressure on crypto markets, though U.S. spot Bitcoin ETFs are still working through record monthly outflows.
Other tokens participated in the move. XRP added 5.7% over the week to $1.09, and Hyperliquid's HYPE rose 5.1% on the day.
