Bitcoin Bears Get Mauled: $31M in Short Positions Liquidated as BTC Flexes Muscle

Another bloodbath for crypto skeptics—Bitcoin just bulldozed through bearish bets with $31 million in short positions forcibly closed. The king of crypto isn’t just surviving; it’s actively humiliating doubters.

Market carnage or calculated comeback? While Wall Street analysts wring their hands over ’volatility,’ BTC’s latest squeeze proves the old rules don’t apply. Short sellers learned the hard way: betting against digital gold in 2025 is like bringing a knife to a blockchain fight.

Funny how these liquidations always seem to hit right after some suit on CNBC declares crypto ’dead.’ Maybe the only thing getting liquidated should be their career advice.

Binance Witnesses Largest Shorts Liquidation Since April

In a Quicktake post on CryptoQuant, a pseudonymous on-chain analyst, Darkfost, revealed that a large number of short positions were opened on Binance as Bitcoin dropped from its current all-time high price. According to the crypto pundit, this part of the derivatives market was a source of significant selling pressure on the price of BTC in the following months.

Darkfost went on to explain that as the price of BTC started its recovery, these short positions, expectedly — although slowly, got liquidated, becoming buying pressure for the cryptocurrency. This series of slow liquidations, however, spiked on May 8 to a new single-day high since as far back as March.

According to CryptoQuant data, over $31 million in short positions were wiped out on Binance, the world’s largest exchange by trading volume. The chart below is of the on-chain indicator showing the amount of liquidations in USD — the ‘Short Liquidations USD’ metric.

Furthermore, Darkfost revealed that the relatively low level of funding rates is around 0.004. This trend suggests the abundant presence of short positions in the market, and also the unwillingness of Binance traders to go long. 

Darkfost concluded that further liquidations or closures of these short positions could cause Bitcoin’s bullish trend to regain its momentum, thus facilitating further growth of the premier cryptocurrency. The crypto analyst also mentioned the possibility that this potential regain of bullish strength could push the flagship cryptocurrency to break above its previous all-time-high price.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $104,335, reflecting an over 1% increase in the past day. According to CoinGecko data, the flagship cryptocurrency has grown by nearly 9% in the past seven days.