The rally erased the largest daily short liquidations since April, while upcoming U.S. inflation figures could fuel further volatility.
Bitcoin’s rebound to $62,952 triggered $504M in short liquidations, the biggest single-day hit to bearish traders since late April. The move follows last week’s lows and reflects heightened market sensitivity ahead of key economic releases.
Prior to this surge, Bitcoin had struggled below $60,000, with liquidations remaining subdued for weeks. The $504M figure underscores a sharp reversal in sentiment, though broader market conditions remain fragile, with the Fear & Greed Index at 8, signaling extreme fear.
Markets now await U.S. inflation data, which could dictate near-term direction. Bitcoin’s dominance stands at 56.2%, while Ethereum trades at $1,666, both posting modest gains.