Bitcoin surged by 4% on Monday, driven by a wave of long liquidations and increased activity from short-term holders. The cryptocurrency’s rise comes as liquidations forced traders to unwind their leveraged positions, adding fuel to the price movement and catching the attention of market participants.

The price spike follows a period of market consolidation, during which Bitcoin hovered within a narrow range. However, the cascade of long liquidations triggered during the recent uptick has provided momentum, pushing the price higher. When leveraged traders are forced to close positions, it often amplifies market moves, in this case giving Bitcoin a temporary boost.

Additionally, data shows that short-term holders—those who have held Bitcoin for less than 155 days—have been realizing profits, contributing to the positive price action. This group typically reacts quickly to market volatility, and their increased activity suggests growing confidence in short-term price movements.

Despite the sudden rise, analysts are cautious about the sustainability of this rally. While long liquidations can drive temporary upward movements, the overall market remains volatile, and Bitcoin’s next moves could depend on broader macroeconomic factors and shifts in investor sentiment.

For now, Bitcoin’s 4% jump reflects a combination of forced liquidations and short-term holder profit-taking, underscoring the continued unpredictability in the cryptocurrency space. Traders will be closely watching whether this momentum can carry forward or if it’s a brief reaction to market positioning.