Short Squeeze! 130,000 Liquidated as Cryptocurrencies Surge Across the Board; BTC Breaks Key Resistance

TradingKey - Bullish sentiment returns to the crypto market as Bitcoin strongly breaks through $72,000, with potential for further gains.

On Thursday (March 5), cryptocurrencies surged across the board, jumping more than 4% as total market capitalization rebounded to $2.4 trillion. Among them, Bitcoin (BTC) rose more than 3%, Ethereum (ETH) gained 8%, Binance Coin (BNB) advanced over 4%, and other mainstream coins followed suit.

Price changes of the top 10 cryptocurrencies by market cap; Source: CoinMarketCap

The crypto market's sudden strengthening caught bears off guard. In the past 24 hours, nearly 130,000 traders across the network were liquidated for nearly $600 million. Short liquidations accounted for nearly $500 million, or over 80% of the total, ending the recent month-long streak of continuous long liquidations.

Crypto market liquidation data; Source: CoinGlass

This leg of the cryptocurrency rally was primarily driven by U.S. President Donald Trump urging the passage of the Clarity Act. On Tuesday local time, Trump posted on Truth Social, slamming the banking industry for obstructing the Clarity Act and urging Congress to pass the bill.

Trump accused the banks, stating, "Bank profits have reached record highs, and we will never allow them to undermine our strong cryptocurrency agenda; otherwise, if we don't resolve the issues with the Clarity Act, cryptocurrency will eventually flow to China and other countries." Additionally, Trump emphasized, "The U.S. must complete market structure reforms as quickly as possible and should let Americans make more money."

Following Trump's public remarks, market expectations for the Clarity Act have gradually risen. According to Polymarket 's latest data, the probability of the U.S. passing the Clarity Act in 2026 has climbed from 65% to 72%, undoubtedly injecting a shot in the arm into the sluggish crypto market.

As of press time, Bitcoin prices have broken through the strong resistance level of $72,000, briefly touching $74,000 to hit a new high since February 5 this year. Market dominance has shifted from bears to bulls, with the potential for further rallies.

Currently, traders on Polymarket are betting that Bitcoin's price will hit $75,000 in March. However, if the U.S.-Israel-Iran conflict eases and market safe-haven demand cools, it will stimulate funds to rotate from gold into the crypto market, with Bitcoin expected to challenge $80,000.

Bitcoin price chart; Source: TradingView