Bitcoin Surges 13% to $71,000 in Record Daily Gain as Short Sellers Get Squeezed

 

Bitcoin Surges 13% to $71,000 in Record Daily Gain as Short Sellers Get Squeezed

Bitcoin has staged a powerful comeback, surging more than 13% in a single day to reclaim the $71,000 level, marking one of the strongest daily gains in its recent history. The sudden rally caught markets off guard and triggered massive liquidations, reigniting debate among traders over whether this move signals a true trend reversal or a temporary relief bounce.

What Sparked Bitcoin’s Sudden Rally?

On February 6, Bitcoin briefly dropped to just above $60,000, shaking out weak hands before aggressively reversing course. Within hours, BTC exploded upward, breaking through the psychologically important $70,000 resistance level.

This sharp move added approximately $340 billion to the total cryptocurrency market capitalization, highlighting how quickly sentiment can shift in crypto markets. A major driver of the surge was a short squeeze, where bearish traders were forced to close positions as prices climbed.

According to market data, short sellers lost over $125 million in liquidations within a single hour, fueling even more upside momentum as buy orders cascaded through the market.

Traders Divided: Bullish Momentum vs Cautious Warnings

As expected, the rally has divided the trading community.

Well-known crypto bull Ash Crypto celebrated the move, calling it a historic pump and pointing to renewed strength in market structure. Many bullish traders believe Bitcoin reclaiming $70,000 could open the door for another leg higher if momentum holds.

On the other side, skeptics like Peter Schiff remain cautious. He warned that this rally could be a classic “slope of hope” — a temporary bounce before further downside. Bitcoin is still down roughly 40% from its October 2025 peak of $126,000, and prediction markets currently lean toward continued volatility rather than a clean breakout.

What This Means for Traders and Investors

From a trading perspective, Bitcoin’s violent rebound reinforces a key lesson: risk management matters more than predictions. Rapid moves like this are often driven by leverage, liquidations, and emotion — not just fundamentals.

For forex traders and multi-asset investors, Bitcoin’s movement can also impact USD sentiment, risk appetite, and global market correlations, making it an asset worth monitoring even if crypto isn’t your primary focus.

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