The post Short Squeeze Triggers $400M Liquidations, Three-Month High appeared on BitcoinEthereumNews.com.

Short-position liquidations in the cryptocurrency market surged to $322 million over 24 hours, the highest level since Black Friday on October 10, triggering a broad rally across major digital assets. The data underscores a dramatic shift in market sentiment as traders who had bet against prices were caught off guard by the sudden surge. Sponsored Sponsored ETF Inflows Fuel Institutional Momentum According to Coinglass data as of 2:00 am UTC on Tuesday, short liquidations accounted for 77.67% of total liquidations, which reached $414.65 million. Approximately 109,672 traders were liquidated during this period. The largest single order occurred on HTX, where a BTC-USDT position worth $91.33 million was forcibly closed. The rally appears to have been fueled by renewed institutional interest in Bitcoin. US spot Bitcoin ETFs recorded net inflows of $471 million on January 2, according to SoSoValue data. This marked a sharp reversal from the $348 million outflow recorded on December 31. A signal that institutional appetite returned swiftly after the New Year holiday. Cumulative net inflows into US spot Bitcoin ETFs have now reached $57.08 billion. Total net assets stand at $116.95 billion, representing 6.53% of Bitcoin’s total market capitalization. The squeeze exposed a stark divide between institutional and retail positioning. While retail traders had crowded into short positions ahead of the move, institutional traders held a net long position at 76.52%, according to market data. The divergence suggests that smart money anticipated further upside. Smaller players remained bearish—a bet that proved costly when prices reversed. Major Cryptocurrencies Post Strong Gains Bitcoin climbed to trade around $93,700, recovering from the consolidation phase that dominated late December. Altcoins posted even stronger gains. XRP led the surge at 10.8%, followed by Ethereum and Solana at 0.8% and 0.5%, respectively. On a weekly basis, gains were more pronounced, with XRP up…

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Filed under: News - @ January 6, 2026 3:22 am