Bitcoin surge wipes out $427M in short bets as ETFs see record inflows
Crypto markets saw sharp movements on Friday as Bitcoin neared a key price level. Over $427 million in short positions were wiped out in a single day. Meanwhile, traditional markets also reacted to strong corporate earnings, with Alphabet shares climbing after a positive report.
In separate news, investment firm Strategy promoted a high-yield crypto product while warning of risks to capital and dividends.
Bitcoin traded close to $77,000, with Ethereum holding steady near $2,200. The broader crypto market cap grew by roughly 1.2% on Friday. This surge came as Bitcoin approached the $80,000 mark, triggering a wave of liquidations.
Within 24 hours, more than $150 million in crypto positions were closed out, with around 70% of those being short bets. The total liquidation of short positions alone exceeded $427 million. Bitcoin’s funding rates remained negative for 46 consecutive days—the longest stretch since 2023. U.S. spot Bitcoin ETFs continued to attract strong interest, recording daily inflows above $200 million. The trend reflected renewed confidence in crypto assets amid the price rally. Elsewhere, Alphabet’s stock price jumped by about 10% after the company reported better-than-expected earnings. Growth in its cloud and AI divisions drove the gains. Strategy CEO Phong Le had recently promoted the firm’s STRC product as an income-focused investment, offering an 11.5% variable dividend. However, the company’s disclosures clarified that dividends were not guaranteed and could be suspended or changed by the board. Investors were also warned that repayment of their initial investment was not assured.
The crypto market’s volatility led to significant liquidations, particularly among short traders. Bitcoin’s push toward $80,000 and sustained ETF inflows signalled strong demand. In traditional markets, Alphabet’s earnings boosted its share price.
Strategy’s high-yield product, meanwhile, carried clear warnings about potential risks to both dividends and principal.
