In a dramatic 24-hour window that sent shockwaves through the crypto market, over $635 million in Bitcoin positions were liquidated amid a violent price surge—fueling speculation that the long-standing bear market may finally be over. With top crypto analysts forecasting a potential $100,000 short squeeze, Bitcoin’s volatile comeback has reignited hopes of a historic rally in 2025.
A Historic Liquidation Spree
The digital bloodbath unfolded rapidly, catching many traders off guard. According to on-chain analytics, over $635 million in leveraged positions—primarily shorts—were wiped out within a single day. It marks one of the largest liquidation events of the year, as BTC roared past critical resistance levels near $72,000, sending a message to bearish traders: this isn’t your 2022 bear market anymore.
Major exchanges, including Binance, Bybit, and OKX, reported cascading liquidations across futures contracts as overleveraged short-sellers were forced to exit their positions en masse. Analysts attributed the move to a perfect storm of factors: declining macroeconomic pressure, a weakening dollar, dovish tones from the Federal Reserve, and renewed institutional inflows into spot ETFs.
Great to see very positive net inflows into Bitcoin ETFs again —
In fact, they have become “the marginal buyer” in Bitcoin since Jan 2024.
The can actually determine whether you see negative or positive net buying volumes on BTC spot exchanges. pic.twitter.com/voEUFThORs
— André Dragosch, PhD⚡ (@Andre_Dragosch) April 23, 2025
$100K Bitcoin? The Short Squeeze Theory
The sudden upward move has fueled talk of a possible short squeeze that could catapult Bitcoin to $100,000 sooner than expected. Prominent trader and crypto analyst Mark Colburn shared his prediction on X (formerly Twitter), writing, “The setup is textbook. High short interest, low exchange balances, and bullish macro backdrop. If this catches fire, $100K is in reach by summer.”
Colburn and others point to rapidly drying BTC reserves on exchanges, signaling investors are pulling their coins off-platform to hold—typically seen as a bullish long-term indicator. Paired with strong demand from institutional investors eyeing crypto exposure through ETFs and custody platforms, Bitcoin may be entering a perfect “supply shock” phase.
Bear Market Over?
While some analysts remain cautious, the consensus is shifting. The current price action has broken through technical ceilings that many believed would take months to overcome. Bitcoin has now posted four consecutive weekly gains, reclaiming both the 50-day and 200-day moving averages, and is outperforming both equities and gold year-to-date.
“This doesn’t look like a dead cat bounce anymore,” said Ava Montague, head of digital asset strategy at QuantumVest. “We’ve seen meaningful on-chain accumulation, increased institutional allocation, and a macro environment that favors hard assets. The bear market narrative is losing steam.”
Indeed, retail traders who stayed on the sidelines during the 2022–2023 downturn are slowly creeping back in. Google Trends data shows that searches for “buy Bitcoin” and “Bitcoin short squeeze” are at their highest levels since late 2021. Social media buzz, combined with rising trading volumes, could provide the momentum needed for a sustained rally.
Macro Forces Lining Up
The broader macroeconomic environment has also played a pivotal role in the recent Bitcoin bounce. With inflation cooling and the Fed signaling a potential rate cut later this year, investors are returning to risk-on assets. Bitcoin, long dubbed “digital gold,” appears to be benefiting from its hybrid identity—part safe haven, part growth asset.
Adding to the bullish narrative is renewed instability in traditional financial markets. Ongoing geopolitical tensions and fears of an equity market correction have led money managers to diversify into alternative assets. Crypto hedge funds have reported double-digit inflows over the past two weeks, suggesting that Bitcoin is being viewed as a legitimate hedge again.
What Comes Next?
While the excitement is palpable, seasoned market watchers urge caution. Bitcoin’s meteoric climbs have historically been followed by sharp corrections. Still, with fewer coins available on exchanges and strong demand pressures mounting, any dips may be shallow compared to past cycles.
Altcoins, too, are beginning to catch the bullish spillover. Ethereum has rebounded above $4,000, Solana continues to gain institutional support, and layer-2 tokens like Arbitrum and Optimism are rallying on improved scaling solutions and user adoption.
The combination of historic liquidations, renewed bullish sentiment, and macro alignment has Bitcoin bulls confidently chanting the once-taboo question: “Is $100K finally in play?” If the momentum holds, 2025 could mark not just a recovery—but a revolution—in how the world views digital value.
