Bitcoin Soars Above $81,000: The Liquidation Storm Devastates The Market!

The world of cryptocurrencies has always had its share of surprises, but the soaring rise of Bitcoin above $81,000 has shocked even the most seasoned veterans. In just 12 hours, nearly 180 million dollars worth of short positions were obliterated, leaving traders stunned and portfolios emptied. What happened to get here?

Bitcoin: short sellers caught in the trap

When Bitcoin rises, it often leaves behind a field of ruins, and this time it did not deviate from the rule. Donald Trump’s victory in the U.S. presidential election acted like a whip on the market, propelling Bitcoin up by more than 6% in a single day. The cryptocurrency reached an unprecedented high of $81,358, triggering a wave of liquidations.

Short positions, those bold bets betting on the decline of the asset’s value, were hit hard by Bitcoin’s skyrocketing rise. CoinGlas reports that liquidations hit particularly hard, swallowing up $67 million in short positions on Bitcoin.

And the damage didn’t stop there: even Dogecoin and Ether fell victim to this tsunami, with $23 million and $21 million in liquidated losses respectively.

The biggest loser? A trader on OKX who saw his $15.6 million evaporate, a harsh reminder that in the world of cryptos, even giants can fall.

An euphoria fueled by politics

What makes this surge even more fascinating is the timing. Trump’s victory and the arrival of a wave of pro-bitcoin politicians in power have bolstered investor confidence. According to Caroline Bowler, CEO of BTC Markets, the price surge reflects what she calls “the Trump effect”, which has brought retail investors back into the spotlight.

Moreover, the BTC Markets exchange noted a 300% increase in user connections in just one week, a clear sign of renewed interest in Bitcoin.

But behind the enthusiasm, on-chain analyst James Check warns: while Bitcoin dances at the height of glory, it does so with a relatively low market value ratio. In other words, caution is warranted. The eight months of consolidation that preceded may have laid solid foundations, but they also hide potential challenges.

One thing is certain: those who bet against the crypto giant better have nerves of steel and a well-crafted safety plan. For when Bitcoin takes flight, it’s best not to find oneself on the other side of the barrier.