Bitcoin’s 2025 Bear Trap Signals Major Short Squeeze

Bitcoin’s September 2025 price action has triggered a major short squeeze, with bears in disbelief as BTC hits record highs, impacting global cryptocurrency markets.

This development suggests potential for volatility and capital rotation, reminiscent of previous bull cycles, with significant gains in market capitalization observed across key cryptocurrencies.

Short Liquidations Reach Record Levels

Bitcoin’s price movements in September 2025 caused significant short position liquidations, catalyzing a major market uptick. Key analysts highlight this as one of the largest bear traps seen in recent years. Market makers have been instrumental, orchestrating conditions conducive to significant volatility, with open interest hitting unprecedented levels.

Over $1 Billion in Shorts Liquidated

The market impact was profound, with over $1 billion in liquidated short positions and Bitcoin’s price reaching a record $116,500. Ethereum also experienced a notable surge, climbing to $2,990. Analysts expect this could trigger an altcoin season, potentially rotating capital into leading DeFi and layer-1 assets.

Bitcoin’s 2025 Patterns Mirror Past Bull Runs

This market situation draws parallels to the short squeezes and reversals of 2017 and 2021, where similar patterns led to substantial market rallies. Experts, like Atlas, anticipate a potential repeat of such cycles, suggesting high upside potential if historical trends prevail.

Bears in disbelief, – Miles Deutscher, Analyst, X (Twitter)