Bitcoin pushed toward $72,000 on Thursday as a sharp rally liquidated more than $2 billion in cryptocurrency short positions, deepening a powerful short squeeze across digital-asset markets.

According to liquidation data cited in current market reports, roughly $3.64 billion in crypto positions were liquidated over 24 hours. Short positions accounted for about $2 billion of that total, while long liquidations stood near $200 million. Bitcoin led the wave with approximately $1 billion in liquidations, followed by Ethereum at about $900 million.

Bitcoin Rally Accelerates

Bitcoin climbed above $71,000 after gaining more than 10% across two sessions, marking its highest level since early June and bringing the cryptocurrency within striking distance of the closely watched $72,000 threshold.

The rally followed a combination of macroeconomic and industry catalysts. The U.S. Treasury increased planned purchases of longer-dated government bonds, helping push Treasury yields lower. Lower yields can improve investor appetite for riskier assets such as cryptocurrencies.

Sentiment strengthened further after a White House meeting with cryptocurrency executives, at which President Donald Trump urged lawmakers to advance legislation supported by the digital-asset industry.

For traders, the move mattered not just because of the price level, but because it showed how quickly derivatives positioning can intensify a spot-market rally. Liquidations on this scale can force rapid repositioning across exchanges, making already volatile moves harder to contain.

Short Sellers Face Mounting Pressure

The rapid advance created a feedback loop in derivatives markets. As Bitcoin rose, exchanges automatically closed leveraged short positions, forcing traders to buy Bitcoin to cover losses. Those purchases added further upward pressure and helped accelerate the rally.

The scale of the liquidation wave highlights the risks of crowded bearish positioning. On Aug. 19 alone, more than $1 billion in Bitcoin short positions were liquidated within roughly an hour as the cryptocurrency pushed above $69,000.

Bitcoin's approach to $72,000 now puts a major technical and psychological level in focus. That level is notable because large round numbers often concentrate trading interest and hedging activity, which can shape short-term volatility even when the broader trend remains unchanged. A sustained break above that area could trigger additional short covering, while failure to hold the gains could expose the market to renewed volatility.