Bitcoin's surge to nearly $70,000 has triggered the most significant wave of forced liquidations since 2021, with short sellers suffering losses of almost $2.7 billion within a 24-hour window.

Data from CoinGlass indicates that a total of 172,108 traders were liquidated, with cumulative losses approaching $3 billion. Short positions accounted for a staggering 92% of all liquidations, while long positions contributed only $257 million in losses, representing a ratio exceeding ten-to-one in favor of short-side capitulation.

This event draws comparisons to October 10, 2025, when Bitcoin experienced a dramatic crash from its all-time high above $126,000, resulting in $19 billion in daily liquidations - the largest deleveraging event in cryptocurrency history. On that occasion, short liquidations reached $2.47 billion. Wednesday's short squeeze has already surpassed that figure, though long-position losses have not reached comparable levels.

As Asian markets opened on Thursday, Bitcoin was trading slightly above $69,100, marking a nearly 8% gain over the preceding 24 hours. The asset touched a high of approximately $69,900, representing a price swing of more than $5,700 from Wednesday's low of around $64,100 - a level of volatility not witnessed since early June.

Within a single hour, over $1 billion in Bitcoin short positions were liquidated, contributing to a full-day total of $1.42 billion. Ethereum saw $1.13 billion in liquidations, while Solana recorded $104.67 million. The Hyperliquid platform processed a single Bitcoin trade valued at $48.8 million, marking the largest individual transaction during this period.

The critical question moving forward is whether Bitcoin can maintain its position above the $69,000 threshold during Asian and European trading hours. Large-scale price squeezes force short sellers to exit, which removes upward momentum from the market. Positions built on forced buying lack genuine demand support, creating significant pullback risks. This episode represents a textbook example of extreme sentiment reversal, reminiscent of the conditions seen at the peak of the 2021 bull market.