More than $246 million in crypto futures positions were wiped out in a single day as Bitcoin reversed sharply on Thursday, punishing traders who had bet against the market.
The move carried the hallmarks of a short squeeze. Funding rates had gone deeply negative in the days before the reversal, a sign that bearish bets had piled up on exchanges. When prices turned higher, those positions were forced to close. Volume surged, and the rally fed on itself.
Buyers Step In Ahead Of Major Resistance Bitcoin had been trading near $71,500 before buyers moved in. Reports from trading data firm TradingView placed the price at approximately $72,900 at publication time.
Institutional demand played a role too. Inflows into spot Bitcoin exchange-traded funds helped put a floor under prices during earlier sell-offs this year, keeping losses shallower than they might otherwise have been.
That dynamic marks a notable shift from past cycles, when Bitcoin often fell in lockstep with equities during periods of stress.
Geopolitical tensions in the Middle East added a layer of uncertainty throughout the week, but Bitcoin held its ground, a fact traders pointed to as evidence of broader market acceptance of the asset.
Open Interest Stays Elevated At $48B
Positioning had shifted toward call options heading into the move, suggesting some traders had already anticipated a push higher.
That level of open interest cuts both ways. It reflects strong participation and genuine conviction from both retail and institutional traders.
Whether that framing holds under pressure remains an open question, but Thursday’s recovery did little to discourage those who believe it.
Featured image from Pexels, chart from TradingView
