Bitcoin and Ethereum Surge Triggers Massive $700 Million Short Squeeze

A sharp and rapid price surge in Bitcoin (BTC) and Ethereum (ETH) has triggered a massive wave of liquidations across the cryptocurrency derivatives market. The sudden upward movement, described by some analysts as a 'mechanical' breakout due to its force and speed, led to the liquidation of nearly $700 million worth of leveraged short positions. This event underscores the volatile nature of the crypto market, where rapid price shifts can quickly erase leveraged bets against the trend. The significant short squeeze indicates strong buying pressure and a potential shift in market sentiment, forcing traders who bet on price declines to cover their positions by buying back the assets, further fueling the rally. Market participants are now closely watching key resistance levels to see if Bitcoin and Ethereum can sustain this momentum.