Cryptocurrency markets recorded their largest short squeeze since October as prices rebounded sharply.
Around $200 million in short positions were liquidated across futures and perpetual contracts in a single day.
Analytics firm Glassnode said it was the biggest short liquidation event among the top 500 cryptocurrencies since October 10.
The squeeze followed a rapid improvement in investor sentiment, which flipped from fear to greed for the first time in months.
Analysts said the move could signal improving market conditions ahead of a broader recovery.
Bitcoin accounted for the largest share of liquidations, with about $71 million in shorts wiped out.
Ether followed with roughly $43 million in short positions liquidated over the same period.
Privacy-focused token Dash also saw heavy pressure, with about $24 million in shorts closed.
Some analysts said geopolitical uncertainty is helping Bitcoin outperform the US dollar.
“One structural tailwind for Bitcoin as a reserve asset is the rise in geopolitical volatility,”
Nicolai Sondergaard said.
He added that while gold remains the main beneficiary, Bitcoin is increasingly viewed as an alternative reserve asset.
Bitcoin has gained more than 10% year to date, outperforming the US Dollar Index.
Analysts also pointed to legal pressure on US Federal Reserve leadership as a potential additional tailwind for Bitcoin.
At the time of reporting, Bitcoin price was $96,621.33.