Bitcoin short sellers suffer $2.7 billion loss as price breaks six-week range
A sharp 11 per cent surge in Bitcoin, driven by calls for the Clarity Act, liquidated over 172,000 traders in the largest loss for short bets since 2021.
Bitcoin short sellers lost approximately US$2.7 billion in the 24 hours leading up to 19 August as the cryptocurrency’s price spiked above US$70,000. The sharp 11 per cent rise saw the asset reach a high of US$72,000, triggering a wave of liquidations that impacted 172,108 professional traders, according to data from CoinGlass.
The surge marks the largest loss for Bitcoin short bets since 2021. Shorting an asset involves betting that its price will decline over a set period, a strategy that proved costly for investors who had positioned themselves against the digital currency.
The price jump was triggered by US President Donald Trump’s public call for Congress to pass the Clarity Act, a proposed regulatory framework for digital assets. This legislative push provided the catalyst for a breakout from a prolonged period of consolidation.
Prior to the spike, Bitcoin had been trading in a narrow range between US$60,000 and US$65,000 for six weeks. During this period, Wall Street had been betting on further declines in the price, leading to a significant accumulation of short positions.
The volatility of the recent move highlights the risks associated with leveraged bets on digital assets. The last significant loss for Bitcoin short sellers occurred in October 2025, when the price crashed days after setting a record of just over US$126,000, costing short sellers US$2.47 billion.
In early trading on 20 August, Bitcoin’s price remained elevated at US$71,400, suggesting that the momentum from the previous day’s rally had not fully reversed.
