Bitcoin surged past the critical $62,000 threshold, triggering a massive short squeeze that exceeded $100 million in liquidations. The swift move higher primarily punished bearish traders who had been betting against the market.
According to CoinGlass data, the rally forced traders who were short Bitcoin to buy back their positions to cover losses, accelerating the upward momentum and fueling further liquidations. The $62,000 level had acted as a technical ceiling for weeks, and its breach ignited concentrated short positions.
The catalyst was weaker-than-expected US jobs data. The soft employment numbers shifted market expectations, with traders anticipating the Federal Reserve may hold off on further monetary tightening, creating a risk-friendly environment.
Institutional capital added significant fuel. Spot Bitcoin ETFs recorded approximately $221 million in inflows. Unlike derivative speculation, this capital represents direct demand hitting the order book, as these funds must purchase actual Bitcoin.
The leverage-driven volatility is stark. In June, Bitcoin’s downturn toward $60,000 decimated bullish positions, wiping out over $1 billion in long liquidations in single sessions. The cycle has now reversed violently against bearish bets.