‘Incredulous Bears’ — US$ 1 billion in short positions in cryptocurrencies are wiped out with the Bitcoin surge

The strong surge of $BTC , which exceeded US$ 118,000, led to the liquidation of more than US$ 1 billion in short positions in cryptocurrencies, in a classic episode known in the market as the "defeat of the incredulous bears".

What happened:

• More than US$ 1 billion in liquidations: According to data from platforms like Coinglass, short positions in Bitcoin and other cryptocurrencies were liquidated en masse in the last 24 hours due to the unexpected price increase.

• Bitcoin leads the movement:

The majority of the liquidations occurred in BTC shorts, with traders betting on a decline and being forced to close their positions at a loss as the price skyrocketed.

• Cascade effect:

As prices rose rapidly, the automatic liquidation algorithms of the exchanges were triggered, generating additional buying pressure (short squeeze), which further fueled the surge.

Term “incredulous bears”:

• Refers to pessimistic traders (the “bears”) who did not believe in the continuation of the rise and bet against the market — ultimately surprised by the rally.

Consequences:

• Increased volatility in the market, with liquidations forcing even more aggressive price movements.

• The rise in altcoins was also intensified, with short liquidations in Ethereum, Solana, Cardano, among others.

• Confirmation of a bullish trend in the short to medium term, with predominantly positive sentiment among investors and analysts.

This episode reinforces the highly leveraged and volatile nature of the crypto market, where sharp movements can cause billion-dollar losses for traders positioned against the direction of the trend.