Bitcoin Surges 12% as Short Squeeze Triggers $588M in Liquidations
Bitcoin Surges 12% as Short Squeeze Triggers $588M in Liquidations
🚀 Short squeeze ignites
Bitcoin reclaimed $65k with a 12.2% jump, driven initially by spot buying before triggering a cascade of forced liquidations.
Key developments:
- Spot demand initiated the move upward
- Short liquidations totaled $588M as positions were forced to close
- Price recovered to range lows near $65k
What matters next: The sustainability of this rally depends on whether genuine spot buying continues after the squeeze completes. Without sustained demand, the bounce risks becoming another lower high in a fragile market structure.
This follows weeks of downside pressure, including the largest single-day drop in 3+ years and liquidations exceeding $2.6B during the broader selloff.
Bitcoin closed below the yearly open, nearing the $80,822 lows — the largest pullback of the present cycle. Liquidations hit $1.7bn in 24 hours, exceeding Covid and FTX events. Uncertainty-driven selling during US sessions continues to pressure price.
Among many macro and technical factors “thin weekend liquidity also exacerbated downward moves over the weekend”, our analysts said in Bitfinex Alpha covered by @reuters reuters.com/markets/wealth…
Bitcoin just saw its largest one day drop in over 3 years, but liquidations were muted and spot ETFs have already flipped back to net inflows. This week’s Bitfinex Alpha explores whether this is a mid cycle reset rather than a final top.
Bitcoin is moving sideways, but the signals are not neutral. ETFs were about $166M net last week, while on-chain shows downside absorption holding. The next move likely starts in flows, not headlines. Full breakdown in Bitfinex Alpha.
What happened to Bitcoin? BTC didn’t just sell off - it broke below $80K for the first time since April 2025, marking the deepest drawdown of this cycle as leverage flushed and risk flipped off. Driven more by macro stress than crypto weakness, this signals a structural reset.
BTC just saw its largest short liquidation spike since Sept 2024. On 13 Feb 10,700 $BTC in shorts were wiped as price bounced on better macro data. If spot demand follows, this squeeze could be the first sign the downside trend is running out of steam.
$BTC jumped 12.2% and reclaimed the range lows near $65k. Spot buying did the work, then forced buying followed, with $588M in short liquidations. The key now is whether spot demand holds after the squeeze.
Bitcoin has broken below the 2021 ATH trading near $68k. Order books show most demand under $66k as support bids were hit or pulled. That can set up a relief bounce, but without stronger spot demand and ETF flows any move risks being just a lower high in a fragile market.
Today, we break down what to watch next in flows, liquidity, and key levels. blog.bitfinex.com/bitfinex-alpha…
A small group of large sellers drove much of the latest leg lower. Bitfinex analysts track repeated US-session spot selling, ETF outflows turning to inflows, and long-term holder supply ticking higher. Our latest read on the BTC range between $55k and $78k 👇
$ETH leverage just reset. $1.08B in long liquidations on Jan 31 marked one of the largest ETH unwinds in months. With exchange inflows at multi-month highs, leverage remains heavy and risk appetite is fading - raising the odds of continued volatility.
Crypto leverage liquidations hit $2.6 billion over the past 24 hours. This exceeds the prior record during the FTX collapse of $1.6 billion and suggests extreme forced deleveraging amid market retracement. We are now seeing a healthy rebound after this liquidity was filled.
Bitcoin Long-Term Holders Increase as Supply Sits Dormant for Three Years
New Bitcoin buyers are accumulating, with a notable increase in coins that haven't moved for 36 months. This pattern typically signals supply absorption and often precedes upward price movement. **Key developments:** - Coins dormant for 3+ years are increasing - Supply absorption pattern emerging - Historical data suggests upside potential if trend continues **Recent context:** - Whales added 200,000 BTC over the past 30 days - Large holders (100+ BTC) continue accumulating during price weakness - USDt issuance remains steady at 250-300M daily with minimal burns The data shows a divergence between retail behaviour (selling) and institutional activity (accumulating). While whale accumulation can stabilise price, sustained upside typically requires increased retail spot demand rather than leverage-driven spikes. This accumulation pattern, combined with persistent stablecoin creation, indicates larger players are positioning for potential future moves while retail traders remain cautious.
Bitfinex Eliminates Sub-Accounts for Security Tokens
Bitfinex Securities has removed the requirement for separate sub-accounts to manage security tokens. Users can now view and manage their tokenized assets directly within their primary Bitfinex account, alongside their digital assets. **Key changes:** - No separate Securities sub-account needed - Security tokens visible in main account - No additional transfers required between accounts The update simplifies the user experience for managing tokenized securities on the platform.
Bitfinex Maintains Zero Trading Fees Across All Products
**Bitfinex continues its zero-fee trading model across all products.** The platform emphasizes that trading fees compound over time through repeated transactions. On Bitfinex, fees remain at zero regardless of trade size—whether $5,000, $500,000, or $5 million. **Key points:** - Zero maker and taker fees across spot, margin, and derivatives - No fees on any trade size - Single account with consistent execution standards - All profits remain in trader's PnL without fee deductions The zero-fee structure applies uniformly across the platform's trading products.
El Zonte: How a Small Salvadoran Town Built a Working Bitcoin Economy
The Bitfinex Financial Freedom Tour visited **El Zonte**, a coastal town in El Salvador that developed one of the world's first functioning circular Bitcoin economies. **Key developments:** - Local residents use Bitcoin for everyday transactions and payments - The economy was built through grassroots education and community trust - El Zonte demonstrates practical Bitcoin adoption beyond speculation This follows the tour's previous stop at Universidad TecnolĂłgica de El Salvador, where Bitcoin is being integrated into academic curriculum. The initiative showcases how smaller communities are leading real-world cryptocurrency adoption through education and practical implementation. [Watch the tour](https://youtu.be/CJBVcXCE6bE)