Bitcoin prices are gradually approaching the psychological threshold of $70,000.

Market observers say that if Bitcoin reaches $70,000, $1.6 billion worth of shorts will be liquidated. Short sellers first borrow Bitcoin at a high price and sell it, hoping to buy it back at a low price after the price drops, but rising prices will make them face losses and force them to buy back their positions, which is called a short squeeze. Liquidations occur once short positions are automatically closed due to insufficient collateral, usually caused by price changes. Bitcoin led with $3.0758 million in liquidations, and open interest fell by more than $1.2 billion in the past few hours. There have been large-scale short liquidations during Bitcoin's past rises, such as short sellers losing more than $6 billion in the first 11 months of 2023.

Moves by BlackRock, the world's largest asset manager, and the chairman of the Federal Reserve have pushed the price of Bitcoin above $65,000, and market participants are watching whether a further surge in prices to $70,000 will trigger liquidations and drive prices to continue to rise.