A growing short squeeze is now driving momentum, with $143 million in short liquidations over the past day and nearly $70 million in just four hours. This forced buying—when traders close losing short positions—can amplify upward price movement, often accelerating rallies in assets like Bitcoin and Ethereum.

However, the bigger picture is far from stable. The high liquidation volume shows both bulls and bears are being punished, a sign of extreme market uncertainty. While long-term holders continue accumulating, short-term traders face a brutal environment where timing mistakes can be costly in either direction.