BTC Breaks Above $111K as Hyperliquid Emerges as Liquidations Leader and Traders Weigh BTC and ETH Bets

COINOTAG — Author/Organization

The latest BTC breakout to $111,000 extended the recent wave of short liquidation. Most of the liquidation volumes were concentrated on Hyperliquid, underscoring how derivatives-driven moves can dominate price action in thin-volume sessions. The weekend rally set the stage for a fresh cycle of liquidations as traders recalibrated risk across platforms.

The latest BTC recovery to $111,000 created a new wave of short liquidations, following the long liquidations from the past week. In the past 24 hours, a total of $169.75M were liquidated on BTC positions, with $160.53M for ETH liquidations. The data signals a swift unwind of leveraged bets as prices moved through key levels.

The recent wave of short liquidations follows a late Sunday rally. This trading event is considered unusually volatile and not sustainable, often leading to significant waves of liquidations during a period of relatively thin volumes. Traders should prepare for quick reversals and spikes in volatility as open interest shifts across venues.

Despite this, BTC continued the climb into the new week, expanding to $111,121. Futures on Binance had a significant premium at $114,591.

Hyperliquid became the leader for BTC liquidations

Over $131M of total liquidations happened on Hyperliquid, where usually Bybit or Binance led the day’s activity. BTC open interest on Hyperliquid is back to $2.69B, still below its usual range. The concentration of liquidations on Hyperliquid underscores the platform’s role as a venue for aggressive short exposure during volatile bursts.

Hyperliquid led the way on Monday’s liquidation, as the perp DEX became the venue for more aggressive short positions. Sunday’s late rally liquidated some of those positions, as BTC broke out to a higher price range. | Source: CoinGlass.

On Hyperliquid, over 53% of BTC positions are long, below the usual ratio for other exchanges. Overall, 68% of BTC positions are now long. Hyperliquid is a venue for much more aggressive shorting, which continues even as the BTC price expands.

The biggest BTC position on Hyperliquid is short, with a notional value of $186M and briefly expanding to over $41M in unrealized profit.

Prominent whales still active on Hyperliquid

During the latest downturn, trader James Wynn did not have any open positions. Trader Machi Big Brother (Jeffrey Huang) is going long on ETH.

One of the aggressive whales that shorted BTC has also closed those positions, instead going long on ETH. On Hyperliquid, whales have switched to shorting BTC at the $113,000 and $115,000 range, shifting their positions. Long positions have accumulated around $88,000, as traders still expect another market downturn.

The crypto fear and greed index shows fearful trading, though still outside the zone of extreme fear. The market sentiment may shift fast, as BTC is driven by derivative trading, and whales may take up more bullish positions.

Currently, long positions are accumulating more readily in the $106,000 range. Short positions are more sparse, with accumulation at the $112,000 and $114,000 range. BTC remains range-bound, with short-term trading, leading to volatile periods.

Based on altcoin performance, the market is still solidly in BTC season, as the leading coin outperforms all other assets. BTC dominance is back to 57.2%, as traders seek market direction. Despite the occasional altcoin pump, most of the leading assets had a bigger drawdown compared to BTC.

The BTC volatility index continues to grow, and is up to 1.92%, from recent lows of 0.88%. BTC has still set expectations for a year-end rally, or a continuation of the current bull cycle. The coin is still vulnerable to short-term aggressive trading, especially during periods of lower trading volumes.

What is BTC liquidations?

BTC liquidations refer to the forced closure of margin positions when price moves against leveraged bets. In practice, surges occur during rapid moves and relatively thin volumes, reflecting the intensity of derivative-driven risk, margin calls, and rapid unwinding of speculative bets. Understanding liquidations helps readers gauge the risk environment during volatile bursts in BTC and related assets.

How do liquidations influence BTC price volatility?

Liquidations amplify short-term price swings by forcing rapid position closures, which can widen bid-ask spreads and push prices through nearby support and resistance levels. The latest data show a clear link between sharp rallies, broad liquidation activity, and elevated volatility indexes, particularly when open interest concentrates on venues like Hyperliquid. Traders watch price action around key levels such as the mid-$100k range to anticipate the next wave of liquidations and possible capitulation moves.

Frequently Asked Questions

What triggered the spike in BTC liquidations on Hyperliquid today?

The spike followed BTC’s late Sunday rally into the $111k area amid thin volumes, which amplified margin pressure on short bets. As prices moved quickly, leveraged positions were liquidated, and risk-off momentum briefly accelerated. This pattern—rally followed by rapid liquidation—highlights the sensitivity of Hyperliquid to aggressive short exposure in volatile conditions.

Is BTC positioned for a year-end rally based on current data?

Market sentiment shows cautious optimism with expectations of a potential year-end rally, but downside risk remains due to derivative leverage and shifting open interest. The volatility index has risen to levels signaling ongoing uncertainty, while BTC dominance remains sturdy around the high-50s. Traders should monitor price action near major levels and be prepared for rapid shifts.

Key Takeaways

• Takeaway 1: Hyperliquid led BTC liquidations with a substantial notional impact, while BTC open interest sits notably below typical ranges, suggesting concentrated pressure points on specific venues.
• Takeaway 2: Across exchanges, a majority of BTC positions remain long (about 68%), with Hyperliquid showing a tighter long share (~53%), indicating divergent risk profiles by venue.
• Takeaway 3: Whale activity shifted toward short BTC around the $113k–$115k range and ETH longs, signaling cautious positioning amid ongoing volatility and potential retracements.

Conclusion

BTC liquidations continue to reflect the influence of derivative markets on price action, particularly during periods of thin liquidity and rapid rallies. Key levels to watch include the mid-$100k range and the $111k threshold, where liquidity dynamics and open interest could trigger additional movements. COINOTAG will continue monitoring data, update coverage, and provide informed analysis as market conditions evolve.