Bitcoin Tops $80,000 as Short Squeeze Wipes Out Over $300 Million

Bitcoin and Ether remain key gauges of liquidity and risk appetite in digital-asset markets, with $80,000 and $2,500 serving as closely watched psychological levels. Stronger-than-expected US nonfarm payrolls data raised expectations for higher interest rates, weighing on demand for risk assets. Even so, the two largest cryptocurrencies have maintained a firmer near-term technical setup despite the less supportive macroeconomic backdrop.

Bitcoin held above $80,000 while Ether rebounded past $2,500, as a crypto-market fear gauge continued to ease. Liquidations across the market reached $231 million over the latest 24-hour period, with short positions accounting for most of the total. The imbalance suggests the recovery forced bearish traders to close leveraged positions, reinforcing short-term momentum even as renewed rate concerns continued to restrain broader investor risk appetite.

Bitcoin’s push toward $80,000 lifted Ether, Solana and other major cryptocurrencies, underscoring renewed demand for risk assets. Round-number thresholds often attract concentrated leveraged positions, stop orders and profit-taking, making them important tests of market momentum. While technical signals point to a strong near-term trend, elevated leverage leaves prices vulnerable to abrupt reversals and cascading liquidations.

Bitcoin briefly challenged $80,000 before retreating toward $78,000, while Ether reversed after holding above $2,500 and fell 1.8%. Crypto-market liquidations over the latest 24-hour period were initially reported at $422 million, then climbed to $620 million in a more recent tally. An earlier snapshot showed more than 93,000 traders had been forcibly closed out. The Fear and Greed Index rose to 74, signaling bullish sentiment but also a heightened risk of an overbought correction.

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 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 and Ether are key bellwethers for the crypto market. When prices surge, leveraged short positions betting on declines can be forcibly closed because of insufficient margin, pushing prices still higher in a short squeeze. The rebound therefore reflects not only improving risk sentiment but also the danger of cascading liquidations caused by highly leveraged trading.

On July 3, Bitcoin first reclaimed $61,000 and climbed as high as about $64,700 intraday, while Ether broke above $1,700 and later topped $1,800. Crypto liquidations totaled about $458 million over 24 hours, with short positions accounting for the majority, and more than 92,000 traders were affected. Spot ETFs continued to record net outflows, while Citi cut its Bitcoin price target to $82,000, citing factors including a shift in capital toward AI.

Bitcoin had weakened amid geopolitical risks, uncertainty over interest rates and capital outflows, but recently rebounded as expectations of U.S.-Iran peace talks grew, funds returned to spot Bitcoin ETFs and technical indicators showed oversold conditions. High leverage in crypto derivatives means sharp price gains can trigger cascading short liquidations and amplify market volatility.

After recovering from its low, Bitcoin first returned to nearly $66,000 as marketwide liquidations reached $325 million over 24 hours, with shorts accounting for about 70%. The price later climbed as high as $67,300, pushing liquidations to $489 million and affecting 107,000 traders, while Ether gained 4.6%. The market’s next focus is the U.S. Federal Reserve’s FOMC interest-rate decision.

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 (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 and Ether are the two largest crypto assets by market capitalization, and their prices are often driven by global risk appetite, leveraged capital and geopolitical developments. Signs of easing tensions in the Middle East on July 20, 2026, sent capital flowing back into risk assets. Bitcoin's ability to hold above $76,000 is now seen as an important technical test before a potential move toward $85,000.

The latest wave of buying pushed Bitcoin above $76,000 and close to $77,000, while Ether climbed above $2,400. CoinGlass data showed that more than $637 million in crypto derivatives positions were liquidated across the market in the 24 hours through July 20, 2026, affecting more than 190,000 traders. Analysts said Bitcoin could target $85,000 if it holds firmly above $76,000.

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.