Crypto Just Triggered $3.5 Billion in Liquidations After Its Biggest Single-Day Gain Since March

Bitcoin traded near $77,500 on Aug. 21, 2026, after rising nearly 8% at one point the previous day, reaching around $78,000 and breaking a months-long consolidation range. The move was Bitcoin’s largest single-day gain since March. The Kobeissi Letter data cited in that report showed total crypto liquidations of $3.5 billion, with short positions accounting for more than $3 billion. BREAKING: Crypto markets officially post their 7th largest liquidation event in history, with $3.5 billion in levered positions liquidated in 24 hours. In 24 hours, crypto markets added +$280 billion in market cap. That's +$12 billion in market cap per hour for 24 hours… pic.twitter.com/zpEsLeRhp9 — The Kobeissi Letter (@KobeissiLetter) August 20, 2026 The rebound reflected a combination of regulatory expectations, macro liquidity operations and leveraged short covering, according to the report. As prices turned upward, forced buying to cover short positions amplified the upward momentum. DISCOVER: Best Meme Coins to Buy in 2026 Bitcoin & Crypto Liquidations, Short Squeeze? How Short Covering Amplified the Rally Over the trailing 24-hour window, total liquidations reached $3.50 billion, with short l...