Bitcoin's Sudden Surge: Short Sellers Take a Hit

A Stir in the Crypto World

Bitcoin's value skyrocketed to $90,000, causing a significant stir in the cryptocurrency market. In just one hour, over $110 million in short positions were liquidated. This dramatic shift occurred as the price jumped from $86,200, with the majority of these short positions being on bitcoin trading pairs.

Impact on Futures Open Interest

Despite the surge, there was no significant drop in futures open interest. This suggests that short sellers either closed their positions to cut losses or were forced out. The lack of a notable change in open interest indicates that the buying was driven by spot trading rather than leveraged trading.

Aggressive Buying Behavior

Bitcoin's cumulative volume delta (CVD) surged by 1,100% during this spike. This aggressive buying behavior hasn't been observed since December 1. Altcoins failed to keep up with Bitcoin's rise, and Bitcoin's dominance climbed back towards 60%.

Historical Context

Historically, Wednesdays have been the best-performing day for Bitcoin over the past year. This trend provides context for the recent price surge. Julien Bittel, head of macro research at Global Macro Investor, noted that Bitcoin's price action aligns with past recoveries after oversold RSI readings. The latest RSI broke below 30, a level last seen in September 2025.

Market Volatility and Caution

The crypto market remains volatile, and this surge serves as a reminder of that. Investors must stay informed and cautious. The market's behavior underscores that Bitcoin remains the dominant force in the crypto space.