Bitcoin surge above 78000 triggers 180 million shorts liquidation

Monday 25 May 2026 - 09:41

By: Dakir Madiha

Bitcoin surge above 78000 triggers 180 million shorts liquidation

Bitcoin surged past the 78,000 dollar level in a sharp upward move that triggered one of the fastest short liquidations in recent weeks. Around 180 million dollars in short positions across crypto derivatives markets were wiped out within roughly 30 minutes, as traders betting on a price decline were caught off guard by the rapid spike.

The move began when Bitcoin broke through 77,000 dollars, a level that activated stop-loss orders and margin calls across multiple trading platforms. As forced buy orders entered the market, the price accelerated upward. This created a chain reaction in which each wave of liquidations pushed prices higher, triggering additional forced exits and intensifying the squeeze.

The rally unfolded during a broader period of heightened volatility in 2026 crypto markets. Bitcoin had previously reached a peak near 126,000 dollars in late 2025 before entering a prolonged correction that brought prices below 60,000 dollars in early 2026. A gradual recovery between March and May pushed the asset back into the 75,000 to 80,000 dollar range, where repeated liquidations have occurred on both sides of the market.

Earlier episodes highlight the scale of leveraged trading activity. More than 657 million dollars in positions were liquidated during a market-wide drop on 17 May, while a separate move above 80,000 dollars earlier in the month triggered about 150 million dollars in short liquidations within one hour. These swings reflect persistent exposure to high leverage across derivatives platforms.

Market structure continues to amplify volatility. Heavy use of borrowed capital means small price movements can trigger large forced liquidations. In ranges where Bitcoin trades near technical resistance zones, both bullish and bearish positions face rapid unwinding, reinforcing short-term price instability.