Bitcoin Short Squeeze Wipes Out $272M as Altcoins Rebound

The cryptocurrency market has seen significant changes in recent weeks, with a substantial number of Bitcoin shorts being closed.

According to data from CryptoQuant, the Open Interest (OI) in Bitcoin derivatives fell from $29 billion to nearly $21 billion as the price dropped towards the $63,000 zone.

This sudden drop in OI indicates a broad leveraged flush, where traders who had taken short positions on Bitcoin were forced to close their trades due to the rapid decline in price.

However, as the market stabilized and the Coinbase Premium Index moved back towards neutral levels, there was a shift in liquidity towards altcoins.

Solana, Chainlink, and Hyperliquid were among the top performers during this period, with Solana climbing by nearly 9% in a single day and Hyperliquid posting a gain of over 12% in seven days.