After a prolonged slump, the bitcoin market has staged a sudden recovery, with prices surging nearly 8% and triggering the largest wave of short liquidations since records began in 2021.

Data from Coinglass shows that over $1 billion in bitcoin short positions were liquidated within a single hour, underscoring the speed of the price reversal. On Wednesday, bitcoin climbed to approximately $69,500, reaching its highest level since June and marking its biggest single-day gain since March.

Traders found fresh reasons to buy. Former President Donald Trump met with executives from cryptocurrency firms including Coinbase, Payward, and Blockchain.com Group Holdings at the White House, reinforcing market optimism that the administration will take a favorable stance toward digital asset development. Meanwhile, falling borrowing costs added further support to the market.

"Bitcoin's move toward $70,000, driven by short covering, shows buyers are regaining confidence. However, the rally now faces a key test of whether it can maintain momentum and challenge the $75,000 region," said Axel Rudolph, chief technical analyst at investment and trading platform IG.

The magnitude of this price swing also reflects how one-sided the market had become. After months of decline, bitcoin had fallen below $60,000, allowing short positions to accumulate in this often-volatile asset. Once prices turned upward, shorts were forced to buy back, accelerating the rebound and creating the sharp reversal that cryptocurrency markets frequently experience after prolonged one-way moves.