Bitcoin Surges to $115K, Liquidating $370M in Short Positions

The cryptocurrency market witnessed a dramatic turnaround beginning Sunday as positive signals emerged regarding a potential trade agreement between the United States and China. US Secretary Bessent’s hints about an imminent deal, expected to be announced later this week following a meeting between the two superpowers’ presidents in Europe, provided the initial catalyst for Bitcoin’s upward movement. This geopolitical development immediately translated into market action, with BTCUSD breaking through key resistance levels at $112,000 and $113,000.

After a period of consolidation around $111,000 during the weekend, following a volatile week that saw $6,000 to $8,000 price swings, the first signs of a potential breakout began to materialize. The initial gains paused for several hours, but the bullish momentum returned with renewed vigor as Asian markets opened on Monday. This pattern highlights the global nature of cryptocurrency trading, where different time zones can contribute to sustained price movements across multiple trading sessions.

The Monday morning Asian trading session proved particularly explosive for Bitcoin, with the asset blasting through $114,000 and $115,000 to reach a peak of $115,600 – its highest trading level since October 14. This two-week peak represents a significant recovery from previous volatility and demonstrates how quickly market sentiment can shift in the cryptocurrency space. The timing of the surge during Asian hours underscores the region’s continued importance in crypto market dynamics.

According to TradingView data, the BTCUSD pair showed remarkable strength throughout the session, building on Sunday’s initial gains. The sustained buying pressure during Asian hours suggests that traders in the region were particularly responsive to the US-China trade developments, potentially viewing Bitcoin as a beneficiary of improved global economic relations. This coordinated buying across time zones created a powerful upward momentum that overwhelmed resistance levels.

While Bitcoin led the charge, the broader cryptocurrency market experienced significant upward movement, with major altcoins posting substantial gains. Ethereum (ETH) jumped by over 7% to trade above $4,200, demonstrating strong correlation with Bitcoin’s movement. Solana (SOL) reclaimed the psychologically important $200 level after a 5.5% daily surge, while Cardano (ADA) approached $0.70 following a 4.7% increase.

The rally extended beyond the large-cap cryptocurrencies, with several smaller digital assets posting even more dramatic performances. ZEC rocketed by over 24%, leading the pack of outperformers that included PI, IP, ENA, and HYPE. This broad-based participation across the cryptocurrency spectrum indicates that the positive sentiment wasn’t limited to Bitcoin alone but represented a genuine market-wide risk-on environment. The synchronized movement across different cryptocurrency projects suggests that traders were betting on the entire sector rather than making selective plays.

The impressive gains over the past day have had devastating consequences for over-leveraged short traders. Data from CoinGlass reveals that more than $370 million in short positions were liquidated in a single day, with approximately 110,000 traders affected since yesterday. These massive liquidations represent one of the most significant clearing events in recent weeks and serve as a stark reminder of the risks associated with leveraged trading in volatile cryptocurrency markets.

The liquidation data highlights how quickly market conditions can turn against traders who bet on price declines. The coordinated nature of the rally, fueled by positive fundamental news and reinforced by technical breakouts, created a perfect storm for short sellers. As Bitcoin broke through key resistance levels, stop-loss orders were triggered, creating additional buying pressure that further accelerated the upward move. This cascade effect demonstrates how leverage can amplify market movements in both directions, creating opportunities for some traders while devastating others.