Bitcoin saw a sharp recovery today after an early drop raised concerns of a continued pullback. The asset, which had been trading above $110,000 yesterday, fell to $108,000 this morning. Within the last three hours, however, it reversed course and surged past $113,500.
The rebound represents a gain of over $5,000 in just a few hours. The move has also affected market sentiment more broadly, with other cryptocurrencies following the same upward trend.
Over $205 Million in Shorts Liquidated
Data from Coinglass shows that the spike triggered a wave of liquidations across major exchanges. In total, more than $205 million in short positions were wiped out over the four-hour period. The largest liquidation recorded was $14.5 million on Hyperliquid.
Nearly 80% of all liquidations happened on Hyperliquid, Binance, and Bybit combined. Bitcoin and Ethereum accounted for most of the positions affected.
This type of price movement, especially when rapid and supported by short liquidations, is often linked to what’s known as a short squeeze – when rising prices force traders betting on a decline to close their positions, further accelerating the rally.
Read also: Why You Should Probably Stay Away from Leverage Trading
Stocks Up, Metals Down
The rebound in Bitcoin comes on a day when U.S. equity markets are also trading higher. The Dow Jones Industrial Average reached a new intraday high, and the S&P 500 is also in the green.
Meanwhile, precious metals are under pressure. Spot gold fell by more than 6%, its steepest one-day decline in over a decade. Silver dropped nearly 9%. Analysts have pointed to a combination of technical factors, a stronger dollar, and easing safe-haven demand as possible reasons for the metals selloff.
Some market watchers have also speculated that a portion of capital may be rotating out of metals and into higher-risk assets like equities and crypto, although this remains speculative for now and hard to quantify.
Read also: How to Invest in Gold: From Coins and Bars to Crypto Tokens
Market Reaction Still Developing
While today’s rebound is significant in terms of price action and liquidations, it remains to be seen whether the momentum will hold. Bitcoin is now trading at its highest level in several days, but further movement may depend on macroeconomic factors, investor sentiment, and upcoming trading volumes.
For now, the price surge has stabilized above $113,000, marking one of the strongest intraday moves for Bitcoin this month.
