Bitcoin to $115K Could Trigger $10B Short Squeeze

The crypto market is on high alert as data suggests that nearly $10 billion in short positions will be liquidated if Bitcoin surges to $115,000. With Bitcoin currently trading well below this level, the mere possibility of such a move is fueling discussions among analysts, traders, and crypto enthusiasts.

Short positions are essentially bets that Bitcoin’s price will drop. However, if the price moves sharply upwards instead, these positions are forcibly closed—or “liquidated”—by exchanges to prevent further losses. This process often causes a “short squeeze”, where rising prices accelerate further as shorts scramble to buy back in and cover losses.

Why a Move to $115K Matters

Bitcoin reaching $115K wouldn’t just be a psychological milestone—it would trigger a massive wave of liquidations, injecting billions in buying pressure into the market. This could result in a rapid price surge, further intensifying bullish sentiment and drawing in more retail and institutional investors.

Historically, such liquidation events have led to wild price swings. With the crypto market already showing signs of recovery, a run toward $115K could act as a catalyst for the next bull cycle, especially if fueled by favorable macroeconomic conditions or regulatory clarity.

Traders Brace for Volatility

While the potential upside excites many, others warn of the high volatility such a move could bring. If Bitcoin were to quickly approach or breach the $115K mark, exchanges could see network congestion, and users might face slippage or delayed order execution.

Still, the narrative of a Bitcoin short squeeze is gaining traction across social media and trading forums. Analysts are advising investors to monitor liquidation levels and derivatives data, which could provide early signs of an incoming squeeze.