Mid-January 2026, the cryptocurrency market once again staged a classic scene of fierce battles between bulls and bears. After a period of consolidation, Bitcoin's price suddenly surged, breaking through a key resistance level. This sudden rally was not a feast for all traders. Instead, it ruthlessly "liquidated" a large number of short positions betting on a price decline in the market. Within just 24 hours, nearly $800,000,000 (800 million USD) of leveraged short contracts were forcibly liquidated, making it one of the most notable events in recent market history. This article will analyze the background and driving factors behind this short squeeze, and combine Gate market data to provide you with the latest market outlook.
Event core: Bitcoin price soars, "blood in the streets" for shorts
According to data from multiple major global tracking platforms, since January 14, 2026, Bitcoin's price has opened