Bitcoin’s $77K rally leaves bears bleeding with $585M shorts wiped

Bitcoin’s fresh rally is raising a strange contradiction in the market. It is printing green indexes while sentiment refuses to follow. BTC managed to breach the $77,000 for the first time in 11 weeks, but bears’ bets dominated the liquidations.

The global crypto market cap surged by almost 3% over the last 24 hours. It currently hovers around $2.61 trillion. The digital assets market’s 24-hour trading volume spiked by 12% to hit $172 billion. This suggests that traders are speeding up their positions. 

CoinGlass data shows that more than 164,835 traders were liquidated in the last 24 hours. The total liquidations went on to hit $747.81 million. However, the largest single wipeout came from a BTC/USD trade worth $15.75 million on Hyperliquid.

Bitcoin rally triggers Short Squeeze?

Bears were seen bleeding as more than 78% of the liquidated positions turned out to be short bets. More than $585 million worth of short bets were liquidated in the period. Data shows that Bitcoin itself accounted for around $378 million of the total liquidations. Over 91% of the liquidated positions ($344 million) turned out to be short bets. This suggests that traders were hoping for Bitcoin price to remain low or fall, however, BTC price jumped by more than 3% in the last 24 hours to peek $78,000.

Yet even as bears bleed, conviction hasn’t flipped. Funding rates for perpetual futures remain negative. This signals that leveraged traders are still betting against the rally. This bearish positioning has now persisted for roughly 46 consecutive days. This is reportedly one of the longest such stretches since the collapse of FTX in 2022.

Markets have already started to show signs of those squeeze patterns. Bitcoin price pump came alongside a broader risk-on shift across global markets. Positive comments from the US and Iran have pushed the market.

Equities climbed, oil and the dollar weakened, and the crypto market followed it. Ethereum price jumped by more than 3% over the last 24 hours. ETH is trading at $2,420 at the press time. Ether price move led to the liquidation of $162 million. However, $142 million worth of the liquidated positions (87%) were short bets.

RaveDAO emerged as the biggest gainer among the top 100 cryptos in this period. RAVE price is up by 25%, it is trading around $21.69.

ETF Inflows lifting BTC?

Derivatives positioning suggests traders are not buying the narrative. Options markets show heavy demand for downside protection. Traders are reportedly paying premiums for puts at $60,000 and even $50,000 levels. Meanwhile, retail participation appears cautious. Ongoing geopolitical uncertainty and repeated ceasefire headlines have created fatigue. It is leaving many traders hesitant to chase rallies.

Spot demand is also showing signs of recovery. Bitcoin has climbed around 14% from its April lows. This surge seems to be supported by renewed inflows into crypto-linked ETFs. Fresh data shows that net inflows have breached $332 million this week,

April 16, 2026, saw $26.05 million following in the BTC ETFs. Ether ETFs closed the day with $18.02 million in net inflows. This was their sixth straight positive session.

BlackRock’s IBIT led with $81.71 million in net inflows. This lifts its cumulative total to $64.35 billion. Grayscale’s BTC added $16.67 million. It brings its cumulative total to $2.23 billion. Morgan Stanley’s MSBT added another $13.36 million during the session. Fidelity’s FBTC posted an outflow of almost $36 million. ARK’s ARKB reported an outflow of $27.4 million.

On the other hand, leveraged traders remain positioned for downside. They are leaning against the rally. When prices rise against a crowded short trade, the unwind can accelerate quickly. As losses mount, short sellers are forced to buy back positions. This adds fuel to the rally in a cascading effect. The longer this standoff continues, the more volatility will be seen in the market.

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