Bitcoin price soars, nearly $800 million in shorts liquidated, crypto market shorts being "crushed"

In mid-January 2026, the cryptocurrency market once again staged a classic scene of fierce long-short battles. After a period of consolidation, Bitcoin’s price suddenly surged, breaking through a key resistance level. This sudden rally was not a feast for all traders. Instead, it ruthlessly “liquidated” a large number of short positions betting on a decline in price. Within just 24 hours, nearly $800,000,000 (8 billion USD) of leveraged short contracts were forcibly liquidated, becoming one of the most notable events in recent market history. This article will analyze the background and driving factors behind this short liquidation event, combined with Gate market data, to provide you with the latest market outlook.

Core Event: Bitcoin Price Surge, “Blood in the Streets” for Shorts

According to data from multiple major global tracking platforms, since January 14, 2026, Bitcoin’s price entered a strong upward trend. The price rapidly rose from around $94,500, reaching a high of $97,941.6 (based on Gate 24-hour high data), setting a new high since November last year. As of January 15, Bitcoin’s price stabilized around $96,469.5, up +1.30% in 24 hours, with a +5.52% increase over the past week.

This aggressive rally directly triggered the liquidation of many short positions set between $95,000 and $97,000. The chain reaction followed: trading platforms began automatic forced liquidations to control risk. Data shows that in the past 24 hours, the total liquidation amount across the entire crypto derivatives market approached $8 billion USD, with short liquidations accounting for over 85%, totaling approximately $680 million USD. For Bitcoin alone, short liquidations exceeded $380 million USD, followed by mainstream assets like Ethereum.

Driving Factors: Macro and Micro Resonance

The strong performance of Bitcoin’s price was not an isolated event but the result of multiple factors working together:

• Positive macro policy expectations: The market is optimistic about the eventual passage of the “Clear Bill,” which aims to establish a clear regulatory framework for cryptocurrencies. This bill seeks to provide definitive structural rules for the US digital asset market, alleviating some long-standing policy uncertainties and boosting institutional investor confidence.
• Continuous inflow into spot ETFs: Although Bitcoin’s price has retreated from its all-time high, US spot Bitcoin ETFs continue to attract capital inflows. On the day Bitcoin rose to $95,000, related ETF products recorded the strongest single-day net inflow in three months, exceeding $750 million USD. This indicates that within regulated channels, structural demand for Bitcoin remains solid.
• Support from macroeconomic data: The latest US Consumer Price Index report shows inflation easing, alleviating concerns about the Federal Reserve adopting more aggressive monetary policies. The moderate macro environment provides breathing room for risk assets, with gold and silver reaching new highs simultaneously, confirming this trend.
• Technical breakthroughs: From a technical analysis perspective, Bitcoin’s price successfully broke through key resistance zones after months, triggering a large number of algorithmic buy orders and chasing bullish sentiment, creating a positive feedback loop between technical and capital factors.

Market Ripples: Altcoins Follow, but Volatility Intensifies

Bitcoin’s surge acted as a rallying call, lifting the entire crypto market. Major altcoins like Ethereum, Solana, XRP all saw significant gains. However, beneath the broad rally, volatility also increased. High-leverage altcoin shorts faced severe liquidations as well. This Bitcoin-led rally serves as a reminder to all traders that in leveraged trading, especially when shorting, setting reasonable stop-losses and risk controls is crucial, as sharp price swings can lead to rapid margin calls and position liquidations.

Gate Market Data Perspective: Current Market Status and Sentiment

As of January 15, 2026, according to the latest data from Gate platform:

• Bitcoin price: $96,469.5
• 24-hour trading volume: $1.53B, indicating high market activity.
• Bitcoin market cap: $1.92T, accounting for 56.38% of the entire crypto market, continuing to solidify its dominance.
• Price change over the past 30 days: +12.31%, but over the past year, a slight correction of -0.069%, suggesting the market is still digesting previous highs and brewing a new trend.
• Current market sentiment index generally shows “Neutral,” which may imply that after a rapid rise, the market might need time to consolidate, with bulls and bears re-engaging within a new price range.

Price trend observation: Currently, Bitcoin is attempting to find support above $96,000. Its short-term movement may be influenced by resistance at $97,941.6 (24-hour high) and support at $94,545 (24-hour low). The focus has shifted to whether it can successfully challenge the psychological barrier of $100,000. However, traders should be cautious: after such a large-scale short liquidation, the market may experience a short-term pullback due to profit-taking.

Conclusion: Power of the Trend and Risk Warnings

This nearly $800 million short liquidation event is a concentrated display of trend strength driven by favorable macro conditions, active capital flows, and key technical breakthroughs. It once again confirms the high volatility nature of the crypto market and the “double-edged sword” characteristic of leverage trading — amplifying gains but also accelerating losses.

For market participants, whether engaging in crypto short or long strategies, in the current volatile environment, it is more important than ever to conduct in-depth fundamental analysis, monitor regulatory developments, and strictly implement risk management. The market always rewards those who respect risk and are well-prepared.