Bitcoin Hits $93,000 as $260 Million Liquidations Spark 2026 New Year Rally

$200 million in short positions went up in smoke in just 24 hours. Bitcoin (BTC) briefly touched $93,000 on Monday, igniting a massive short squeeze as the crypto market extends its 2026 new year rally. This surge reflects a powerful mix of geopolitical shifts and AI-led momentum across global markets.

Bitcoin Hits $93,000 as Shorts Face Massive Liquidations

According to CoinDesk, the premier cryptocurrency surged by about 1% in a day and 3% over the week, shaking off a volatile end to 2025. The move was amplified by the derivatives market, where liquidations crossed $260 million. Shorts accounted for roughly $200 million of that total, signaling that bearish traders were caught off guard. On platforms like Hyperliquid, shorts represented over 54% of liquidated positions, highlighting a crowded trade that became highly vulnerable as prices climbed.

Geopolitical Tailwinds: The Venezuela Factor

The market's risk appetite was fueled by dramatic developments in South America. The U.S. ousting of Venezuelan leader Nicolás Maduro sent ripples through global commodities and risk assets. President Donald Trump signaled a new era for the nation, suggesting U.S. military intervention might not be necessary if the acting government cooperates. Traders viewed this geopolitical shift as a green light for risk assets, leading to a surge in both crypto and technology shares.

Altcoin Momentum and the Global AI Wave

The rally wasn't limited to Bitcoin. XRP added 3% to trade above $2.10, while Dogecoin (DOGE) remained the week's top performer with a 17% gain. Meanwhile, Asian equities climbed to record highs, driven by investor demand for AI-related tech firms. Even gold saw a sharp rebound, jumping back above $4,400 an ounce, showing that investors are diversifying into both safe havens and high-growth assets.