Bitcoin has climbed to almost $75,000 in Asian trading as more than $1bn in short positions were wiped out, extending a sharp rise across the cryptocurrency market.
Bitcoin was up about 8% over the day and 18% across the week after briefly moving above $75,500. Ether and Solana also advanced as traders betting on falling cryptocurrency prices were forced to close their positions.
The latest liquidations have taken the total value of bearish crypto bets closed over two days to about $3.8bn. Including all bearish positions liquidated during that period, the figure has exceeded $4bn.
The scale of the forced selling has helped drive what is being described as a mechanically fuelled rally. When the market moves against traders holding short positions, those traders must buy the asset to close their bets. That additional demand can push prices higher and trigger further liquidations.
Thursday’s liquidation figure was the largest recorded since 2021. A further $1bn in short positions has now been removed from the market, adding to the pressure on traders who had positioned for a decline.
Bitcoin’s latest advance has coincided with easier conditions in Treasury markets and signals from Washington viewed as supportive for digital assets. Those factors have helped improve sentiment despite the cryptocurrency remaining well below its previous peak.
Bitcoin’s market value is currently about $1.5 trillion, around 40% below its record high of more than $126,000 reached last October. Even after the recent gains, the market leader has therefore not recovered to its earlier peak.
The move higher follows a period in which traders had built up sizeable bearish exposure. As prices rose instead of falling, the resulting liquidations amplified the initial increase and spread across major cryptocurrencies.
Bitcoin’s rise to just below $75,000 marks an 18% increase over seven days, while its brief move beyond $75,500 represented the session’s high point in Asian trading. Ether and Solana joined the rally, although the available figures do not specify their individual gains.
The developments highlight the effect that derivatives positioning can have on cryptocurrency prices. The buying created by short sellers closing losing trades can produce rapid gains even when the underlying market has not yet returned to its previous record levels.
For now, the two-day liquidation total remains the central feature of the market move, with the latest wave following Thursday’s record figure. Bitcoin’s recovery has gained momentum, but its valuation remains significantly below last October’s high, reinforcing the distance the cryptocurrency still has to cover.
