Bitcoin’s unexpected surge has sent shockwaves through the market, triggering a wave of short position liquidations.

The world’s leading cryptocurrency spiked by over 3% in just 24 hours, surpassing $102,500 and briefly reaching over $104,000, its highest price since January 31. The rally comes after U.S. President Donald Trump announced a comprehensive trade agreement with the U.K. and as Bitcoin exchange-traded funds (ETFs) saw record inflows, surpassing $40 billion.

The broader crypto market mirrored Bitcoin’s performance, with altcoins rising 10% and pushing the total market capitalization to $1.14 trillion, its highest since March 6, according to TradingView data.

This rapid price movement has forced the liquidation of numerous short positions—bets against Bitcoin’s price—amounting to nearly $400 million in the last 24 hours, the highest total since at least November. Along with this, $22 million in long positions were also liquidated.

This imbalance in liquidations suggests a heavy bearish sentiment in the market that is now being reversed. As these short positions are closed, the potential for further price gains increases, signaling that the market could see additional upside momentum.