Key Takeaways
- Bitcoin and the broader crypto market rebounded sharply Monday, recovering nearly all weekend losses.
- The bounce followed news that the Trump administration would delay proposed 50% tariffs on EU imports.
- The surge triggered over $180 million in liquidations, mostly from short positions.
Bitcoin (BTC) and the broader crypto market reversed course early Monday, erasing much of the weekend’s losses after President Donald Trump delayed a planned 50% tariff on European Union imports.
The announcement provided markets with breathing room, sending risk assets higher.
Bitcoin, which had dipped below $108,000 during the weekend selloff, climbed back above $110,000. Altcoins followed suit, with many recovering in step.
Shorts Crushed in Market Rebound
Initially unveiled over the weekend, the delay in tariffs came after the EU pushed for negotiations, hoping to avoid a prolonged tit-for-tat trade war.
The pause appears to have calmed broader macro jitters, fueling the crypto comeback.
According to data from Coinglass, the sudden bounce liquidated $183 million in leveraged positions over the past 24 hours, with over $108 million coming from short sellers.
Binance saw the largest liquidation: a short position of $1.52 million ETH/USDT.
Bitcoin Eyes Record High as Binance Shorts Unwind
With BTC reclaiming $110,000, attention is now turning to a possible push toward new all-time highs.
Market watchers are keeping a close eye on short positioning, particularly on Binance, where short interest has thinned amid the rally.
Short squeezes, sharp price jumps that force short sellers to close or increase leverage, have historically triggered large upward moves in Bitcoin.
According to CryptoQuant, several squeeze signals were triggered between April and May, setting off cascading short liquidations and fueling bullish momentum.
So far, no fresh short squeeze signals have emerged. But with volatility rising and resistance levels in sight, markets may be gearing up for another breakout.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
