Bitcoin Surges Past $93K as $530M in Crypto Shorts Liquidated Amid Trade Optimism

Over $530 million in short positions were liquidated in the past 24 hours as crypto markets rallied on optimism surrounding U.S.-China trade relations. Bitcoin (BTC) soared from $88,000 to above $93,500, sparking a broader market rally with ether (ETH), Cardano (ADA), and dogecoin (DOGE) gaining 14%, while Solana (SOL) and XRP climbed 7%.

The largest wave of short liquidations since October followed U.S. President Donald Trump's comments about potentially softening tariffs on China. Traders interpreted the remarks as a signal of easing tensions, fueling bullish momentum. According to BTSE COO Jeff Mei, optimism over a U.S.-China trade deal and expectations of interest rate cuts have driven demand for crypto assets as hedges against a weakening U.S. dollar.

Major exchanges felt the brunt of the liquidation wave, with Bybit recording $234 million in liquidated shorts, followed by Binance with $100 million and Gate.io with nearly $70 million. The largest single liquidation was an ETH futures position on Binance worth over $4.5 million.

Altcoins also rallied, with UniSwap (UNI), Near Protocol (NEAR), and Sui Network (SUI) up as much as 18%. Memecoin mog (MOG) jumped 30%, once again acting as a high-beta play mirroring ETH’s gains.

Liquidations occur when traders fail to maintain margin requirements on leveraged positions, prompting exchanges to close positions automatically. This latest surge in liquidations underscores the volatile nature of crypto markets, especially during major macroeconomic developments.

As global currencies face devaluation risks, BTC’s positioning as a store of value is gaining renewed attention, potentially fueling its continued ascent.