Bitcoin Surges Past $80K as Massive Short Squeeze Hits Traders

The sudden price action caught traders betting on further downside off guard, with short liquidations accounting for 81% of the total forced closures recorded by CoinGlass. While Bitcoin traded near $80,470, Ethereum posted even stronger momentum, gaining 6.1% over a 24-hour window to reach $2,428. Across the broader market, 117,560 traders faced liquidation, totaling $914.84 million in closed positions.

This recovery follows a period of significant pressure on spot Bitcoin ETFs, which saw $1.16 billion in withdrawals over three trading sessions. BlackRock’s IBIT fund reported $405.3 million in outflows on November 2, its largest single-day exit this year. Analysts at Bitfinex suggest that while the price has rebounded, sustained institutional demand—indicated by three consecutive days of inflows—is required to confirm a long-term trend.

Looking ahead, market participants are watching the $84,000 to $85,500 range. Bitfinex identified approximately 2.26 million BTC acquired at these price points, creating a potential zone of overhead supply where investors may look to exit at breakeven. Despite the volatility, the latest squeeze underscores the high leverage currently present in the market, with Binance accounting for nearly 39% of the liquidation volume.