Crypto short liquidations exceed $3B as Bitcoin approaches $72K
As Bitcoin and altcoins break records, over $3 billion in short positions were liquidated in two days.
1Bitcoin nears $72,000
Bitcoin surged to its highest levels since early June on Wednesday in response to a liquidity intervention by the US Treasury. The upward momentum continued on Thursday, with the cryptocurrency testing local highs of $71,992 on Bitstamp. Altcoins also gained value following Bitcoin's rally.
2Historic short liquidations
According to CoinGlass data, $3.1 billion worth of short positions were liquidated in crypto markets on August 19-20. Thursday's liquidation set a new record for the largest single-day short liquidation ever recorded. Bitcoin accounted for over half of total short liquidations at $1.65 billion.
3Historical comparison
The $3.1 billion short liquidation figure doesn't represent the largest crypto liquidation event when including long positions. That record remains with the $20 billion long liquidation cascade following Bitcoin's retreat from its all-time high of $126,200 in October 2025. CoinMarketCap data shows Thursday's total liquidations rank seventh historically.
4Short-term investors take profits
CryptoQuant data reveals that short-term investors (wallets holding for less than 155 days) made their largest profit-taking move of 2026, sending a record 43,300 BTC to exchanges. The Spent Output Profit Ratio (SOPR) metric for short-term holders reached its highest level since April.
5Short-term holders' cost basis
As previously reported by Cointelegraph, the aggregate cost basis for short-term investors stood at $68,700. Analysis suggested that any price increase above this level could be limited by investors' desire to exit underwater positions.
620% surge in HYPE
The HYPE token gained nearly 20% following Donald Trump's signals about a legal US pathway for Hyperliquid. This movement once again highlighted the crypto market's sensitivity to political developments.
7Bitcoin's technical outlook
According to TradingView data, Bitcoin is testing a significant resistance level near $72,000. A breakout above this level could lead to new record highs, while failure to surpass it might result in a short-term correction.
8Critical period for the market
Crypto markets are at a crucial turning point both technically and fundamentally. Bitcoin's performance at the $72,000 level and investor behavior emerge as key factors that will determine the market's direction in the coming period.