"It really exploded"...Bitcoin surge annihilates short sellers

▲ Virtual asset trading

Bitcoin (BTC) temporarily broke past the $80,000 barrier, creating a massive surge in the virtual asset market.

According to a CoinGeape report on May 4 (local time), Bitcoin surged by nearly 3% over the past 24 hours, reaching a high of $80,596. Trading volume increased by 114%, and the total market capitalization of virtual assets rose by about 2%. On the last trading day alone, approximately $630 million flowed into Bitcoin spot ETFs, demonstrating investor confidence.

The catalysts for this rally are regulatory easing and the de-escalation of geopolitical tensions. Patrick Witt, White House crypto advisor, hinted at the possibility of a May deliberation on the CLARITY Act, a U.S. cryptocurrency market structure bill based on stablecoin yield consensus. President Trump's statement to help escort ships through the Strait of Hormuz also eased geopolitical risks, inducing a short squeeze and reducing selling pressure.

The price of this surge led to the ruin of short sellers. According to CoinGlass data, approximately 110,000 traders were forcibly liquidated in the past 24 hours, with total liquidations reaching $370 million. Short sellers took massive hits in Bitcoin, Dogecoin (DOGE), XRP, Zcash (ZEC), and Terra Luna Classic (LUNC), among others.

Experts are predicting the entry into a full-fledged bull market. Adam Back, CEO of Blockstream, noted that Bitcoin's 200-week moving average had broken above $60,000, diagnosing that a bottom signal had been detected. Grayscale's research team also analyzed that Bitcoin had formed a bottom in the $65,000 to $70,000 range. 10x Research stated that Bitcoin has sent its first bull market signal and that the medium-term technical outlook is improving faster than expected.

The altcoin market is also heating up. Dogecoin surged over 4%, exceeding a weekly gain of 15%. XRP reclaimed $1.41 amid whale accumulation and expectations of spot ETF inflows. Zcash continued its rally, bolstered by positive outlooks from Barry Silbert and Arthur Hayes, while Terra Luna Classic surged over 7% on news of Binance's token burn and software update.

Bitcoin is currently trading around the $79,000 mark as profit-taking occurs. The greed index is rising, and spot ETF inflows are continuing, so expectations for further gains remain high. While FOMC divergence and an overheated stock market could act as variables, the improvement in technical indicators is encouraging.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*