On Thursday, Bitcoin surged above the $71,000 threshold, mirroring an overall rally in the crypto space amid the CLARITY Act hype. In the meantime, short liquidations for BTC surpassed a whopping $3 billion.
Bitcoin Soars Beyond $71,000 Today
At press time, Bitcoin price was hovering around $71,730.46, up 11.43% over 24 hours. According to data from CoinGlass, a total of $3.35 billion worth of crypto positions were liquidated over the past 24 hours, impacting 189,216 traders. The large volume of short positions also led to the largest loss in money, with $3.07 billion liquidated to $274.10 million in long positions.
The imbalance shows how so many traders who were short on Bitcoin had to exit their short trades as the price increased. For context, the rally pushed shorts further into the upper part of the range.
The liquidation pressure was increased on shorter time frames. Four-hour liquidations were valued at $385.20 million. Out of this, $356.79 million were in shorts, with 12-hour liquidations valued at $449.47 million, of which $378.82 million were in shorts.
During the last hour total liquidations were $45.53 million of which $40.30 million were shorts. Moreover, CoinGlass data revealed that the most significant liquidation order on the Hyperliquid BTC-USD market was at the sum of $48.80.
The Bitcoin chart indicates a recovery from the lows of near $63,000 earlier in the timeframe. Bitcoin rallied quickly after consolidating at $64,000-$65,000, swinging through $66,000 and $68,000 and heading toward $70,000 on August 19. Another breakout on August 20 took the price into over $71,000, with the price currently standing at approximately $71,719.89 on the chart.
The CLARITY Act Factor
The Bitcoin surge followed Trump’s call for Congress to pass the CLARITY Act at a White House gathering of crypto and financial industry leaders. The law aims to provide a clearer definition of digital assets and for US authorities.
A limited legislative calendar still needs to be addressed by the Senate for passage. Among those attending the event were Coinbase CEO Brian Armstrong, Robinhood CEO Vlad Tenev, Kraken co-CEO Arjun Sethi, ICE CEO Jeffrey Sprecher, and SEC Chair Paul Atkins, CFTC Chair Mike Selig, and White House crypto advisor Patrick Witt.
Another reason for the BTC price surge is the US Treasury’s announcement of speeding up debt buybacks. It raised the risk appetite in investors, which fueled the crypto market rally today.
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