After slipping below $63,000 earlier in the week, Bitcoin surprised traders with a strong bounce back toward $68,400. At one point on Wednesday, it came within touching distance of $70,000 before pulling back to around $68,300, a nearly 5% swing from the session high to the overnight low of $67,700.
That move marked a sharp daily gain of over 7%, even though the asset is still down more than 20% over the past month.
This kind of rebound often signals that buyers were waiting for lower prices. When Bitcoin dipped, demand quietly built up. Once momentum shifted, prices moved quickly. In crypto, when prices rise fast, the effect spreads across the entire market. Meanwhile, Ethereum jumped above $2,000; Solana moved close to $90, and several other large tokens posted double-digit gains within hours.
Jemi Motesho
How Did $400 Million in Short Positions Get Wiped Out?
But the real story behind the surge was the wave of liquidations that followed. More than $400 million in short positions were wiped out in 24 hours, according to data from CoinGlass. Short sellers are traders who bet that prices will fall. When the market moves against them, exchanges automatically close their positions to prevent deeper losses. That forced buying pushes prices even higher, creating what traders call a short squeeze.
Bitcoin alone accounted for around $200 million of those liquidations, while Ethereum saw over $150 million. The rapid price move turned what looked like a steady downtrend into a sudden reversal.
Crypto Stocks and Risk Appetite Return
The rebound wasn’t limited to tokens. Crypto-related stocks also climbed sharply as confidence returned. Coinbase shares rose strongly, Bitcoin mining firms gained ground, and companies tied to digital assets saw renewed investor interest. When crypto prices rise quickly, traditional market players often respond just as fast. It reflects a broader return of risk appetite, at least for now.
This bounce also came during a period when traders have been watching macro signals closely. Interest rate expectations, inflation data, and global market trends continue to shape investor behavior. When traditional markets stabilize, crypto often benefits. The latest rebound appears to reflect that pattern.
What This Bitcoin Recovery Means for the Broader Market
Even with the strong recovery, Bitcoin remains well below its recent highs and is still nursing losses from the past month. The recent drop had built strong bearish sentiment, which partly explains the scale of the short squeeze. Markets rarely move in straight lines. Sharp declines are often followed by sharp recoveries, especially in highly leveraged environments like crypto derivatives trading.
Long-term investors tend to focus less on daily swings and more on adoption trends, institutional flows, and regulatory clarity. That belief in Bitcoin’s long term role is often echoed by corporate advocates. As Michael Saylor, former CEO of MicroStrategy, once said, “Bitcoin is digital gold- growing harder, smarter, faster, & stronger due to the relentless progression of technology.”
Still, short-term traders are watching closely, knowing that momentum can shift quickly again.
Jemi Motesho
