Bitcoin survives a $500M flush – Is a historic short squeeze next?

The final 24 hours had been most likely probably the most risky.

Technically, Bitcoin rose greater than 25% this week, and its highest wick almost touched the $80k degree. However BTC all of the sudden pulled again greater than 6%, marking what the broader market is looking the most important crypto “flash crash” because the tenth of October, 2025.

The outcome? $108 billion in shorts was liquidated inside six minutes, and $500 million in longs inside half-hour. 

However was this the start of the This autumn-style crash? Because the chart under exhibits, BTC crashed 6.5%+ at first of October. In the meantime, this week BTC managed to carry its weekly positive factors, and it’s nonetheless up 21%+.

Due to this fact, to this point, it appears extra like a typical correction, which occurred inside a wholesome weekly uptrend.

Notably, there was a major sign from Bitcoin [BTC] ETFs as they recorded their highest inflows day on report this month. 

In keeping with the information from SoSoValue, Bitcoin ETFs had $507 million in inflows on the nineteenth of August, their largest each day influx because the first week of Might. The most important Bitcoin ETF, IBIT, led the demand with $285 million value of inflows, of which IBIT attracted 56%, making it hottest amongst buyers.

IBIT has to this point posted $1.2 billion in inflows this month, suggesting that it may have one of the best month of inflows since Might.

In brief, the bears could have much less and fewer affect on the value because the bulls are accumulating. In the meantime, the market is questioning whether or not the crypto cycle has entered a brand new bullish part and the most important quick squeeze in historical past is underway, which is extremely unlikely to be dominated out.

Bitcoin’s resilience sparks bear lure bets

A significant flash crash occurred, liquidating an extended place value $500 million in BTC inside six minutes.

Nonetheless, BTC is resilient, and historical past has proven {that a} quick squeeze throughout a leveraged accumulation interval might be a optimistic signal for the asset.

As well as, the influx of ETFs, if it persists, together with the liquidation of longs and large shopping for, will create glorious situations for development.

It’s noteworthy {that a} comparable state of affairs occurred beforehand, triggered by the biggest ever “lengthy” liquidation within the crypto market. Quick ahead to now, over $5 billion in shorts have been squeezed to this point in August, marking the strongest liquidation cascade since October 10’s $16.78 billion.

This occasion in the end precipitated the bear part for Bitcoin. Nonetheless, some analysts postulate that the present quick liquidation on an unprecedented scale would possibly propel BTC into a brand new bull run.

With technical resilience, sturdy ETF inflows, and heavy deleveraging, the bullish case appears convincing sufficient.

The state of affairs is straightforward: Bitcoin’s restoration from the “flash crash” is best than what the market had seen earlier than in October, and “establishments’ positioning” can be supportive of a bullish state of affairs.

On this context, deleveraging seems to be a shopping for alternative, not a distribution channel.

This, in flip, means that the $5 billion quick squeeze to this point is barely the start of the biggest quick squeeze in crypto historical past.

Ultimate Abstract

• Bitcoin remains to be up 21%+ this week regardless of the flash crash.  In the meantime, sturdy ETF inflows present consumers are nonetheless lively.
• Merchants have squeezed greater than $5 billion in shorts in August, which may set BTC up for an excellent larger transfer increased.