Crypto Markets Flip Risk-On as BTC Clears $95K and ETH Reclaims $3,300
Bitcoin and Ethereum ignited a fresh wave of bullish momentum after decisive breakouts that caught bearish traders off guard, wiping out nearly $700 million in leveraged short positions across crypto derivatives markets.
Bitcoin surged through the long-standing $95,000 resistance, climbing as high as $97,800 during U.S. trading hours and posting a 3.5% gain in just 24 hours. The move marked Bitcoin’s strongest upside continuation in weeks, ending a consolidation phase that had capped prices for much of the past two months.
At the same time, Ethereum (ETH) outperformed, jumping 5% to around $3,380. The rally pushed ether decisively above $3,300, a level it had not reclaimed at any point in 2026, reinforcing the bullish tone across large-cap digital assets.
Short Sellers Squeezed as Liquidations Surge
The synchronized breakouts triggered a cascade of forced liquidations, particularly among traders betting on lower prices using leverage. According to data from CoinGlass, nearly $700 million in short positions were liquidated over the past 24 hours.
- Bitcoin shorts: approximately $380 million
- Ethereum shorts: more than $250 million
Short liquidations occur when prices rise sharply against bearish positions, forcing exchanges to automatically close trades once margin requirements are breached. These events can amplify rallies, as liquidations effectively turn into market buy orders.
“The break above $95,000 triggered the liquidation of a meaningful pocket of short positioning, forcing cover-driven demand,” said Gabe Selby, Head of Research at CF Benchmarks. He added that the move appeared largely mechanical, driven by market structure dynamics rather than a sudden shift in fundamentals.
Risk Appetite Returns to Crypto Markets
Market strategists see Bitcoin’s move above $95,000 as a key psychological and technical signal for the broader digital asset market. Joel Kruger, Market Strategist at LMAX Group, described the breakout as a “green light” for risk-on positioning.
“This move has reawakened bullish momentum,” Kruger noted, adding that traders are now watching for a potential push toward $100,000 and even a retest of all-time highs if momentum holds. Bitcoin’s previous record peak stands near $126,000, reached in early October last year.
Kruger also highlighted supportive conditions in traditional markets. Stable bond yields and resilient equity indices may be providing a favorable backdrop for crypto assets, helping fuel renewed inflows.
Volume Confirms the Move, Speculation Remains Contained
Importantly, the rally was accompanied by a noticeable increase in trading volumes, suggesting that fresh demand, rather than thin liquidity alone, is driving prices higher. At the same time, funding rates in perpetual futures markets remain relatively subdued, according to CoinGlass data, indicating that the rally is not yet showing signs of excessive leverage or speculative overheating.
Still, analysts remain cautious about confirmation levels.
“A weekly close above $95,000 for Bitcoin, or a sustained break in Ethereum above $3,500, would provide a strong confirmation signal for a renewed leg higher,” Kruger said.
A Potential Turning Point for Crypto Bulls
While part of the move may be technical in nature, the scale of liquidations and improving market breadth suggest that crypto markets may finally be emerging from their recent lull. With Bitcoin reclaiming key levels and Ethereum showing relative strength, traders are watching closely to see whether this breakout evolves into a broader, more durable uptrend.
For now, one thing is clear: bears were caught on the wrong side of the move and the market momentum has shifted firmly back in favor of the bulls.
