Bitcoin Reclaims $66,000 as Rebound Triggers $325 Million in Liquidations

Bitcoin’s break above a six-week trading range triggered a short squeeze, as exchanges forcibly closed leveraged bearish positions and the resulting buybacks pushed prices higher. The move matters because it reset crowded derivatives positioning and tested whether the rebound could attract durable demand beyond forced covering. CoinGlass figures may understate the true scale because some exchanges limit liquidation reporting. The rally also unfolded as investors assessed Washington’s crypto-policy push and the outlook for U.S. liquidity and interest rates.

On Aug. 19, bitcoin touched $69,749 and was up 9.3% for the week. CoinGlass recorded $1.14 billion in crypto short liquidations within one hour, led by $677.64 million in bitcoin and $422.90 million in ether; total liquidations for the hour were $1.22 billion. Bitcoin later topped $71,000, while 24-hour short liquidations reached $2.74 billion. The same day, President Donald Trump urged Congress at a White House crypto event to pass the CLARITY Act, and the Federal Reserve released minutes of its July 28-29 meeting.

Bitcoin traded near $63,000 as cryptocurrencies struggled to find a catalyst independent of US equities, which retreated from recent highs. The market’s heavy use of leverage can amplify relatively small price moves, forcing exchanges to close positions and accelerating declines. Liquidation totals are therefore closely watched as a gauge of short-term stress and the vulnerability of speculative positioning.

Bitcoin remained pinned around the $63,000 threshold, while Ether approached $1,900 and major tokens including SOL and XRP weakened. Marketwide crypto-derivatives liquidations reached $166 million over one reported 24-hour window, while a more recent rolling tally stood near $80 million. The Crypto Fear and Greed Index slipped to 31, and Bitcoin traded close to the lower Bollinger Band, signaling that near-term momentum remained subdued.

Bitcoin and Ether are the crypto market’s main gauges of risk appetite, with sharp moves often spilling into altcoins and leveraged derivatives. The latest recovery comes as record-high U.S. equities and easing anxiety over the Federal Reserve encourage investors to take on more risk. Still, sentiment remains fragile after recent volatility and heavy liquidations unsettled traders across digital-asset markets.

Bitcoin reclaimed the $65,000 level in the latest broad-based advance, while Ether jumped more than 3% to break above $1,940. Crypto derivatives positions worth about $213 million were liquidated across the market over the past 24 hours. The Fear and Greed Index rose to 30, signaling an improvement from deeper pessimism, though the reading remained in “fear” territory and pointed to continued caution among investors.

Bitcoin’s attempt to rebound has faltered as global risk assets come under pressure, raising concerns that the move was a bull trap rather than the start of a sustained recovery. Technical indicators showed that the price breakout lacked follow-through buying, leaving leveraged traders exposed as liquidity tightened before the Federal Reserve’s interest-rate decision.

Bitcoin briefly climbed to $66,921 on July 29 before reversing sharply. Risk aversion intensified after South Korean equities triggered a circuit breaker, while traders reduced leverage ahead of the Federal Reserve announcement. The resulting selloff pushed cryptocurrency liquidations above $670 million over 24 hours, underscoring how quickly leveraged bullish positions unraveled when the rebound failed to hold.

As the leading cryptocurrency, Bitcoin’s price swings have long served as a barometer for global crypto and fintech markets. The cryptocurrency recently came under sharp downward pressure as geopolitical tensions escalated and the US Federal Reserve signaled a hawkish monetary policy stance. Renewed inflows into spot exchange-traded funds have since provided strong support for the crypto market, leaving Bitcoin’s outlook closely linked to macroeconomic indicators and institutional fund flows.

Bitcoin rebounded sharply on July 16, 2026, after a steep selloff, powering back above $63,500. The short squeeze liquidated more than 57,000 traders across the crypto market over the previous 24 hours, with total liquidations exceeding $160 million. Short positions accounted for nearly 60% of the total. Despite the near-term recovery, the market remains under pressure from the Federal Reserve’s hawkish stance and geopolitical tensions.

Bitcoin previously plunged after being hit by U.S. nonfarm payrolls data, triggering cascading liquidations of leveraged positions. The subsequent rebound also lifted Ether and other crypto assets, but investor sentiment remained in extreme-fear territory as outflows from U.S. spot Bitcoin ETFs continued and markets awaited the U.S. Consumer Price Index (CPI).

The latest wave of buying pushed Bitcoin back to about $64,000, briefly touching $64,200. Based on differing data sets, roughly 97,000–105,000 traders were liquidated over 24 hours, with total liquidations ranging from $270 million to $675 million. Short positions accounted for more than $540 million in losses, representing over 80% of the total.

Bitcoin and the broader cryptocurrency market rely heavily on leveraged capital. When prices fall sharply, exchanges forcibly close positions with insufficient margin, amplifying the decline. The latest selling came ahead of the U.S. Federal Reserve’s interest-rate decision as risk aversion intensified. Consecutive net outflows from spot Bitcoin ETFs and MicroStrategy’s first Bitcoin sale also undermined investor confidence.

Bitcoin fell below $67,000 early on June 3 and briefly touched $66,316, pulling Ether, Solana, Dogecoin and other major cryptocurrencies lower. Marketwide liquidations reached $1.78 billion over 24 hours, with long positions accounting for about 90%. The concentrated unwinding of leveraged bullish bets sent market anxiety sharply higher.

Bitcoin (BTC) and Ether (ETH) are key benchmarks for the crypto market, and their price swings affect perpetual futures and leveraged positions on exchanges. When markets reverse rapidly, platforms forcibly close long and short positions with insufficient margin, making CoinGlass liquidation data a widely used gauge of market risk and investor sentiment.

As of July 19, Bitcoin had rebounded to around $78,900 over the previous 12 hours, while Ether recovered to about $2,300. CoinGlass data showed that crypto liquidations exceeded $300 million over 24 hours, with more than 83,000 traders forced out of their positions. During the recent market moves, short positions at one point accounted for 67% of liquidations, highlighting the impact of sharp rallies on highly leveraged bears.

Bitcoin is a key bellwether for the crypto-asset market, and sharp price declines often trigger cascading liquidations of highly leveraged positions. Investors turned cautious ahead of the U.S. Federal Reserve’s Federal Open Market Committee meeting, while stalled U.S.-Iran negotiations further dampened risk appetite.

On the morning of April 28, Bitcoin fell as low as $76,460 and breached the $76,400 level. More than $338 million in positions were liquidated across the market over nearly 24 hours, affecting about 100,000 traders, with long positions accounting for more than 80% of the total. The Fear and Greed Index also dropped overnight to 33, returning to the fear range.

The United States and Iran agreed to a two-week ceasefire, while Pakistan's government proposed extending the ultimatum deadline for Iran, temporarily easing geopolitical risks. Oil retreated as stocks and cryptocurrencies rebounded, signaling a renewed shift toward risk assets and putting heavily leveraged traders betting on further crypto declines under mounting liquidation pressure.

Bitcoin briefly topped $72,700 in early trading on April 8, while Ether rose above $2,260. About $600 million in cryptocurrency positions was liquidated over the previous 24 hours, affecting roughly 120,000 traders. Separate data showed that news of the U.S.-Iran ceasefire triggered about $427 million in combined liquidations of short positions in Bitcoin, Ether and oil.