Bitcoin Liquidations Surge Past $375M as BTC Soars Above $96,000 – What’s Next in 2026?

• Why Are Bitcoin Traders Getting Wrecked Right Now?
• The Short Squeeze That Could Send BTC to the Moon
• Institutional Money Floods Back Into Bitcoin
• Where’s Bitcoin Headed Next?
• FAQ: Your Burning Bitcoin Questions Answered

Bitcoin’s wild ride continues as over $375 million in BTC positions were liquidated in the past 24 hours, with short sellers facing a $1 billion reckoning. The cryptocurrency’s rally past $96,000 has triggered massive liquidations, while institutional inflows and bullish predictions suggest this might just be the beginning. Here’s why traders are watching the $97,100 level like hawks and how Michael Saylor’s latest $1.25 billion bet fits into the puzzle.

Why Are Bitcoin Traders Getting Wrecked Right Now?

CoinGlass data reveals a bloodbath in the crypto markets – $375.85 million in Bitcoin positions got liquidated during this rally, with $100 million of that vanishing in just one hour as BTC punched through $96,000. What’s really got traders sweating? There’s still $1 billion in short positions dangling precariously, waiting to get liquidated if Bitcoin touches $97,100. Exchanges like Binance, OKX, and BTCC are sitting on a powder keg of Leveraged shorts that could explode upward at any moment.

The Short Squeeze That Could Send BTC to the Moon

The numbers don’t lie – cumulative liquidation leverage for short positions peaked at $451.49 million around $96,202. Binance alone holds $48.79 million of this ticking time bomb, while OKX and Bybit account for $54.47 million and $67 million respectively. When you see this much fuel for a short squeeze, you know things could get volatile fast. As one trader on Crypto Twitter put it: “They’re trying to short the unstoppable force – good luck with that.”

Source: CoinGlass – BTC/USD Liquidation Map

Institutional Money Floods Back Into Bitcoin

While retail traders were getting liquidated, the big players were loading up. bitcoin ETFs saw $753.73 million in inflows over two consecutive days starting January 12, according to tracking data. Fidelity’s FBTC led the charge with $351.36 million, followed by BlackRock’s IBIT at $126.27 million. Meanwhile, Michael Saylor’s MicroStrategy just dropped another $1.25 billion to buy 13,627 BTC at an average price of $91,519. The company now holds 687,410 BTC worth $66.33 billion – talk about putting your money where your mouth is.

Where’s Bitcoin Headed Next?

At publication time, BTC trades at $95,734 (per CoinMarketCap data), up 4.6% weekly and 9.56% year-to-date. Analysts are getting increasingly bullish – one report from Latin American exchange Mercado Bitcoin predicts BTC could double from current levels by year-end, potentially reaching $180,000-$200,000. Their thesis? Growing institutional adoption and regulatory clarity could push Bitcoin’s market cap to 14% of gold’s. CryptoQuant data adds fuel to the fire, showing Binance’s Bitcoin-to-stablecoin ratio signaling potential upside.

FAQ: Your Burning Bitcoin Questions Answered

How much Bitcoin was liquidated recently?

Over $375 million in BTC positions were liquidated in 24 hours, with $100 million occurring in just one hour as Bitcoin surged past $96,000.

What price could trigger more liquidations?

The $97,100 level is critical – about $1 billion in short positions face potential liquidation if BTC reaches this price.

Which exchanges have the most liquidation risk?

Binance holds $48.79 million in vulnerable shorts, OKX has $54.47 million, and Bybit accounts for $67 million of at-risk positions.

How much Bitcoin did MicroStrategy just buy?

Michael Saylor’s company purchased 13,627 BTC for $1.25 billion on January 12, bringing their total holdings to 687,410 BTC worth $66.33 billion.