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.