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      Bitcoin Reaches $81,000 Following $140 Million in Short Liquidations

      Bitcoin experienced a significant surge of 5%, reaching a price of $81,000, driven by a wave of forced short liquidations totaling $140 million in the crypto derivatives market. This event is characterized as a classic short squeeze, where traders who had bet on falling prices were compelled to buy back Bitcoin at market prices, further fueling the rally as their forced purchases pushed prices even higher.

      During this rally, short positions represented approximately 80% of the total liquidation volume, with major exchanges such as Binance, Bybit, and Hyperliquid experiencing the most significant impacts. One notable session recorded $280 million in short liquidations, contributing to a total of $409 million across all positions. Glassnode identified this event as the largest single-day short liquidation since it began tracking the metric in 2019.

      In addition to the short squeeze, Bitcoin spot exchange-traded funds (ETFs) saw substantial inflows, with at least $232 million entering on a single day and cumulative inflows exceeding $1 billion over several days. Macroeconomic factors, including US Treasury bond buybacks that lowered yields, have also made risk assets like Bitcoin more appealing to investors. On-chain data indicates that long-term holders are accumulating Bitcoin, as evidenced by a decrease in exchange balances and an increase in long-term holder supply.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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