Bitcoin (BTC) has powered through the $116,000 mark today, October 28, 2025, marking a significant rebound from recent volatility and extending gains since early October.
This move comes on the heels of a volatile month, with BTC hitting an all-time high near $126,270 earlier on October 6 before dipping to around $113,000 by October 10. The cryptocurrency is now trading at approximately $116,200, up about 1.8% in the last 24 hours, fueled by renewed institutional inflows and a classic short squeeze.
October has historically been Bitcoin’s strongest month, with average returns of 14.4% since 2013, and 2025 is no exception so far. From October 1 when BTC hovered around $110,000 amid post-September consolidation, the price has climbed roughly 5-6% overall, despite intra-month swings.
This resilience follows a 5.16% September gain—the third-best on record—and is supported by broader market optimism, including expectations of a Federal Reserve rate cut to 3.75%-4.00% 96.7% probability per CME FedWatch.
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Bitcoin spot ETFs saw $149 million in net inflows on October 27 alone, contributing to $4.7 billion over the past month. The global crypto market cap surpassed $4 trillion briefly, with altcoins like Ethereum (ETH) pushing toward $4,250 (up 2.5%) and Solana gaining traction.
If this momentum holds, analysts project BTC could test $130,000-$150,000 by year-end, driven by post-halving dynamics and seasonal liquidity.
$340M+ in Shorts Liquidated: Bears Get Rekt
The rally triggered a brutal short squeeze, with over $340 million in short positions liquidated in the past 24 hours—part of a broader $467 million wipeout across crypto derivatives 76% shorts.
Bitcoin shorts alone accounted for about $177 million, with Ethereum adding $130 million. Platforms like Binance, Bybit, and OKX saw the heaviest activity, as leveraged bearish bets unraveled above $115,000 resistance. This isn’t isolated; earlier in the month (October 21), $322 million in total liquidations hit (mostly longs), but today’s short-heavy flush signals shifting sentiment.
As one trader noted on X, “Bears got rekt… Welcome to the next chapter of the bull run.” Whales have absorbed over 62,000 BTC from long-term storage recently, stabilizing the floor around $113,300 support.
$117,000-$120,000 if liquidations continue fueling upside. A drop below $113,700 could retest $110,000, especially if Fed news disappoints. Stablecoin demand is booming like the new yen-backed launches, and dormant BTC movements 270,000+ coins activated in 2025 are being snapped up by institutions, keeping upward pressure intact.
What Is a Short Squeeze?
A short squeeze is a rapid, self-reinforcing price increase that forces traders who are short betting the price will fall to buy back the asset at higher and higher levels, which in turn pushes the price even higher.
It is a classic feedback loop in leveraged markets like crypto, stocks, or futures. Traders borrow BTC or any asset and immediately sell it, hoping to buy it back cheaper later. Creates downward pressure initially; open interest in shorts grows.
New buyers institutional inflows, FOMO, news, etc. push the price up past key levels. Shorts are now underwater. Exchanges require margin. If equity falls below maintenance margin, positions are automatically liquidated.
Forced market buy orders enter at the best available price. Liquidated shorts buy back BTC ? more upward pressure ? more shorts hit stop-loss or liquidation ? more buys. Each liquidation adds buying volume, accelerating the rally.
Remaining voluntary shorts see the carnage and manually cover (buy back) to cut losses. Adds discretionary buying on top of forced liquidations. The loop peaks when most shorts are wiped out.
Price can overshoot fundamentals dramatically (e.g., BTC jumping $2K in minutes). Visual Example (Bitcoin on October 28, 2025) Price: $114,500 ? $116,200 (+1.5% in <2 hrs). Each cluster of liquidations acted like rocket fuel.
High open interest in shorts. More potential forced buyers. Leverage (10x–125x). Tiny 1% move can wipe out 100x positions. Concentrated liquidation levels. “Heat map” clusters create domino effects. Low liquidity above price. Thin order book = bigger price jumps per buy order.
How Traders Spot a Potential Squeeze
Funding Rate ? Deeply negative = shorts paying longs (overcrowded bearish bet). Open Interest + Price ? OI rising while price falls = building short pressure. Liquidation Maps (Coinglass, Bybit, etc.) ? Clusters just above current price. Exchange Long/Short Ratio ? <0.8 = heavily shorted.
On Oct 28, Binance BTCUSDT perpetuals showed long/short ratio 0.91 and -$120M 24h funding paid by shorts ? perfect setup.Outcome of the Oct 28 Squeeze$340M vaporized in <24h (76% shorts). New local high $116,400 before minor pullback.
A short squeeze isn’t just “price going up” — it’s a forced buying avalanche triggered by over-leveraged bears hitting liquidation walls. For traders: Never fight a squeeze with more shorts. Longs can ride it, but exit before the final parabolic blow-off. Data > emotion: watch OI, funding, and liquidation levels.
