More than $246 million in crypto futures positions were wiped out in a single day as Bitcoin reversed sharply on Thursday, punishing traders who had bet against the market. The leading cryptocurrency climbed back to around $73,300 — a gain of roughly 4.5% over 24 hours — after a stretch of selling had dragged prices into the high $60,000 range. Related Reading: Cardano’s DeFi Boom: TVL Spikes 23% In Less Than 2 Weeks The move carried the hallmarks of a short squeeze. Funding rates had gone deeply negative in the days before the reversal, a sign that bearish bets had piled up on exchanges. When prices turned higher, those positions were forced to close. Volume surged, and the rally fed on itself. Buyers Step In Ahead Of Major Resistance Bitcoin had been trading near $71,500 before buyers moved in. Reports from trading data firm TradingView placed the price at approximately $72,900 at publication time. The recovery came against a backdrop of broader risk appetite returning to financial markets, with the S&P 500 posting gains and the US dollar softening — conditions that have historically drawn money into alternative assets like Bitcoin. Institutional demand played a role too. Inflows into spot Bitcoin exchange-traded funds helped put a floor under prices during earlier sell-offs this year, keeping losses shallower than they might otherwise have been. That dynamic marks a notable shift from past cycles, when Bitcoin often fell in lockstep with equities during periods of stress. Geopolitical tensions in the Middle East added a layer of uncertainty throughout the week, but Bitcoin held its ground, a fact traders pointed to as evidence of broader market acceptance of the asset. Open Interest Stays Elevated At $48B The derivatives market remains stretched. Open interest across major exchanges sat near $48 billion, according to data aggregated by Coinglass, with CME Bitcoin futures alone accounting for roughly $7.9 billion — or around 110,000 BTC. Positioning had shifted toward call options heading into the move, suggesting some traders had already anticipated a push higher. That level of open interest cuts both ways. It reflects strong participation and genuine conviction from both retail and institutional traders. Related Reading: Ghana’s Crypto Push Begins As 11 Companies Enter SEC Sandbox But it also means the market stays vulnerable to sharp swings if headlines change fast. A single piece of macro news — a Federal Reserve signal, an escalation overseas, a policy shift — could flip the mood quickly. Bitcoin has shed its old reputation as a pure risk-on trade, at least partly. Advocates increasingly frame it as a store of value in environments where governments spend freely and currencies weaken. Whether that framing holds under pressure remains an open question, but Thursday’s recovery did little to discourage those who believe it. Featured image from Pexels, chart from TradingView
