Bitcoin Short Squeeze Wipes Out $1.23 Billion in One Hour

Crypto bears are reeling after a sudden market surge caused $1.23 billion in short positions to vanish in just sixty minutes. Bitcoin climbed 2.5 percent to touch $68,424, triggering a wave of forced buybacks that pushed prices even higher. Ethereum also saw significant movement, climbing nearly 4 percent to reclaim the $2,084 level.

The damage was particularly heavy on the Hyperliquid exchange, where three major whales lost a combined $194 million. One trader alone saw an entire position of 1,800 Bitcoin worth roughly $117 million wiped out. In total, Bitcoin shorts accounted for $770 million of the carnage, while Ethereum traders lost another $430 million.

This frenzy was largely sparked by activity in the bond market, as falling Treasury yields provided a tailwind for digital assets. The forced buying created a feedback loop, as short liquidations forced exchanges to purchase Bitcoin at market prices, fueling the rally further.

All eyes are now on the upcoming FOMC minutes. If the report sounds dovish, the current rally could gain sustainable momentum from new buyers. However, a hawkish surprise might spook investors and hand control back to the bears.