Bitcoin Liquidations Surpass $375 Million as BTC Price Breaks $96,000 – What’s Next in 2026?
- Why Are Bitcoin Liquidations Exploding?
- How Are Institutions Reacting to BTC’s Rally?
- What’s Driving Bitcoin’s Price Surge?
- Could This Be the Calm Before the Storm?
- FAQ: Your Bitcoin Liquidation Questions Answered
Bitcoin’s relentless rally has triggered over $375 million in liquidations in 24 hours, with $100 million wiped out in just one hour as BTC soared past $96,000. Analysts warn of a potential $1 billion short squeeze if bitcoin hits $97,100. Meanwhile, institutional demand surges, with BTC ETFs absorbing $753 million in inflows and Michael Saylor’s MicroStrategy adding 13,627 BTC to its treasury. Here’s a deep dive into the market frenzy and what it means for traders.
Why Are Bitcoin Liquidations Exploding?
Data from Coinglass reveals a staggering $375.85 million in Bitcoin liquidations within 24 hours, including a chaotic $100 million purge in a single hour as BTC breached $96,000. The cumulative leverage from short liquidations peaked at $451.49 million, equivalent to 96,202 BTC. Major exchanges like Binance, OKX, and BTCC saw $48.79 million, $54.47 million, and $67 million in liquidations, respectively. The market is now eyeing the $97,100 level—a breach could trigger another $1 billion in short squeezes.
How Are Institutions Reacting to BTC’s Rally?
Institutional players are doubling down. BTC ETFs recorded $753.73 million in inflows, reversing a four-day outflow streak. Fidelity’s FBTC led with $351.36 million, followed by BlackRock’s IBIT ($126.27 million) and Bitwise’s BITB ($159.42 million). Not to be outdone, MicroStrategy scooped up 13,627 BTC for $1.25 billion, boosting its holdings to 687,410 BTC ($66.33 billion). "This isn’t just FOMO—it’s a structural shift," notes a BTCC analyst. "Institutions see BTC as digital gold, and they’re stacking it."
What’s Driving Bitcoin’s Price Surge?
BTC is trading at $95,734 (up 4.6% weekly, 9.56% YTD), with analysts citing three catalysts: 1) Rising stablecoin reserves on Binance (BTC/stablecoin ratio hit 1.0), signaling buying pressure; 2) Regulatory clarity boosting investor confidence; and 3) The looming halving in April 2026. Mercado Bitcoin predicts BTC could double to $180,000–$200,000 by year-end. "We’re seeing BTC capture 14% of gold’s market cap—that ratio will widen," their report states.
Could This Be the Calm Before the Storm?
While the mood is bullish, the $97,100 liquidation zone is a potential flashpoint. Coinglass data shows Binance’s BTC/USDT perpetual swaps have $157.04 million in cumulative short leverage at $96,282, with 100x positions ($19.5 million) most vulnerable. "Traders are playing with fire," warns a veteran trader. "A 5% drop could cascade into $2 billion in liquidations."
FAQ: Your Bitcoin Liquidation Questions Answered
What caused Bitcoin’s liquidations to spike?
The rapid price surge past $96,000 forced overleveraged short positions to unwind, creating a domino effect. Exchanges automatically close these positions when collateral is depleted.
Which exchange had the most BTC liquidations?
Bybit led with $67 million, followed by OKX ($54.47 million) and Binance ($48.79 million). BTCC saw significant activity but avoided the top three.
Is Bitcoin’s rally sustainable?
While metrics like ETF inflows and institutional accumulation suggest strong support, extreme leverage increases volatility risk. This article does not constitute investment advice.
