Massive short squeeze propels Bitcoin to $69.000 and Ethereum to $2.100

Bitcoin spiked to $69.000 on Wednesday as the crypto market surged, triggering roughly $1.25 billion in short liquidations. The sudden rally saw Bitcoin climb around 7.6% in just three hours, while Ethereum jumped about 10% and touched $2.100.

$1.25 billion in shorts liquidated

The rapid price rise hit traders betting on further declines hardest. According to shared market data, around $1.25 billion in short positions were liquidated in total.

In a short squeeze, traders are forced to close their positions when the price moves against them. Those compulsory purchases can then create additional upward pressure, temporarily amplifying the move.

Bitcoin was trading around $68.447 at the time of the screenshot, up 7.91% over the longer period shown.

Ethereum and XRP rise strongly

Ethereum was among the strongest of the major cryptocurrencies, reaching $2.100 during the rally. At the time of the screenshot, ETH stood around $2.089.

XRP also benefited significantly from the improved sentiment, rising roughly 6.69% to trade near $1.07. Solana climbed solidly as well, sitting around $81.81.

The sudden turnaround shows how quickly sentiment can shift right now. After a period of heavy price pressure, short positions are being squeezed out of the market en masse. The big question is whether Bitcoin can hold the zone around $69.000 once the effect of the short squeeze fades.