Bitcoin Pops $81K While $300M in Overconfident Shorts Get Handed an Eviction Notice 🚪

Bitcoin climbed above $81,000 on Friday, extending a three-day recovery from $78,000 and breaching the $80,000 level after roughly $300 million in leveraged crypto positions were liquidated over four hours. Data cited in market coverage showed $306.55 million in positions liquidated in that window, with $286.14 million coming from short positions and $20.41 million from longs. Over 12 hours, total liquidations reached $411.62 million, including $372.53 million in shorts and $39.09 million in longs, while the 24-hour liquidation tally stood at $515.05 million, of which $457.26 million was attributable to short positions. Traders with leveraged short strategies found themselves on the wrong side of the move as the rally accelerated through the $80,000 range.

The surge came during a week dominated by restrictive macro signals. On Wednesday, the Federal Reserve raised its target rate by 25 basis points to 3.75%-4.00%, and two days later the Bank of Japan lifted its policy rate to 1.25%, the highest level in 31 years. The dollar index reached 100.48 on Friday as Bitcoin pushed higher, a combination of higher borrowing costs and a stronger dollar that had weighed on broader market sentiment earlier in the week.

Crypto traders were also processing a setback for the Digital Asset Market Clarity Act, commonly referenced as the CLARITY Act. On Tuesday, the Senate vote on cloture for the motion to proceed failed 49 to 50, preventing the bill from advancing at that stage and pressuring $BTC in the immediate aftermath.

Jiang Zhuoer, a cryptocurrency miner from China, said Bitcoin's recovery unfolded without a drop below $75,000, a level he had previously flagged. Zhuoer stated that the pace of the recent rise could carry $BTC toward a strong resistance zone between $83,000 and $84,000, and added that a move into that region could be followed by a sharp correction, with $BTC potentially retreating to the $72,000-$74,000 range. Coverage from CoinGape noted that analysts are watching the $83,000-$86,000 area next, while $78,000 remains the nearest key support level.