Bitcoin Rebound Triggers $504 Million in Short Liquidations as BTC Nears $64,000

Bitcoin’s sharp recovery from last week’s lows triggered a wave of liquidations across the cryptocurrency market, wiping out traders who had bet on further declines. Data from the past 24 hours shows that short sellers lost approximately $504 million, marking the largest single day liquidation event for bearish positions since late April.

The surge came after bitcoin rebounded from below $60,000 and climbed to nearly $63,800 over the weekend. Many traders had opened short positions expecting the downtrend to continue, only to be caught offside as prices moved higher.

Crypto Liquidations Top $655 Million

Total liquidations across the crypto market reached roughly $655 million, affecting more than 104,000 traders. Bitcoin related positions accounted for around $315 million of the total, while ether positions contributed approximately $188 million. The largest single liquidation involved a bitcoin futures position worth $12.3 million on the OKX exchange.

A liquidation occurs when an exchange automatically closes a leveraged position after losses exceed required margin levels.

Volatility Remains High Amid Global Uncertainty

Despite the recovery, bitcoin’s rally lost momentum on Monday. $BTC touched $63,700 before slipping back to around $62,500. Renewed military tensions between Iran and Israel added fresh uncertainty to financial markets, pushing oil prices higher and sending Asian stocks lower, including a nearly 7% drop in South Korea’s KOSPI index.

Bitcoin had already faced pressure in recent weeks from Strategy’s first bitcoin sale since 2022, continued outflows from spot Bitcoin ETFs and a shift of investor capital toward artificial intelligence-related stocks. Market participants are now closely watching upcoming U.S. inflation data and major IPOs, including SpaceX, as potential drivers of further volatility.