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Bitcoin hits $71,000, ETFs draw $700 million in biggest inflows in months
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- DeepHorus
Bitcoin surged past $71,000 on Tuesday, triggering a wave of short liquidations and marking a sharp acceleration in the cryptocurrency's rally. The move came as spot bitcoin exchange-traded funds recorded roughly $700 million in inflows, their strongest single-day haul in months. That combination pushed the market into overdrive.
The breakout intensified after bitcoin pushed through the $69,000 resistance level, forcing bearish traders to capitulate. CoinGlass data showed $252 million in liquidations over the past hour, with short sellers accounting for $243 million of that total. Longs lost just $9 million during the same period. Bitcoin positions led the damage at approximately $220 million liquidated, while ether-based bets added $11 million.
Liquidations occur when a leveraged position moves far enough against a trader that an exchange forcibly closes it. A cascade of short covering can feed the underlying move, because closing a short position requires buying the asset, which pushes prices even higher. This dynamic appeared to play out as bitcoin climbed from around $69,000 to above $71,000.
The broader impact stretched across the day. Total crypto liquidations reached $3.26 billion over 24 hours, with $1.2 billion of the $1.31 billion in losses over the final 12 hours coming from shorts. The scale suggests leveraged bearish positioning was heavily crowded, making the market vulnerable to a sharp squeeze.
The ETF inflows, reported at roughly $700 million, underscore renewed institutional demand. Market participants viewed the combination of strong fund flows and short covering as a signal that momentum could continue, though some cautioned that rapid price moves often invite volatility. The sentiment remains cautiously optimistic.
Looking ahead, traders will watch whether bitcoin can hold $71,000 and attract further inflows. A sustained breakout could draw additional upside, while a failure might prompt profit-taking. For now, the shorts' pain has become the bulls' gain, and the market remains on edge.
