Bitcoin posted its best single-day performance since February 2026, rising 7.1 percent to $71,800 as more than $1.4 billion in short positions liquidated across futures markets.
The rally unfolded as a textbook short squeeze: bearish traders betting on a price decline were forced to buy back Bitcoin to close positions as the price climbed past $70,000. Each forced buy triggered further liquidations, creating a self-reinforcing rally that overwhelmed sellers.
Binance—which controls roughly 36 percent of total Bitcoin futures open interest—saw the strongest short squeeze in its history. The scale dwarfed an earlier liquidation event that had pushed Bitcoin to $69,000.
Retail demand amplified the move. On-chain data showed Bitcoin spot demand hit its highest level in two years, meaning the squeeze wasn't driven by futures liquidation alone. New buyers were already positioned to enter once the price cleared resistance.
Bitcoin now sits at $71,800, up 11.6 percent in 24 hours. The question now: can the price hold without forced buying. Once shorts finish covering, the burden shifts to new accumulation from spot buyers to sustain the rally.
