A powerful bitcoin short squeeze over the weekend intensified tailwinds for the cryptocurrency after it crossed $41,000 early Monday. Data shows exchanges liquidated nearly $220 million in crypto futures positions, with shorts accounting for 85% of forced sell-offs.

Over $120 million worth of bearish bitcoin bets were wiped out since Friday, indicating many traders failed to anticipate the latest breakout. The ascendance came amid swelling optimism around a potential U.S. spot bitcoin ETF approval.

Intensifying volatility also sparked a spike in open interest as large players opened massive derivative bets trying to profit from price swings. Analysts flagged bitcoin open interest on BitMEX alone exploded 90% within hours on Saturday.

Significant liquidations often signal near-term exhaustion in a trending move after excess leverage gets expunged from the market. For now, the developments reflect blistering momentum as bitcoin extends its yearly gain to over 150%.

But massive shorts flush-outs also frequently precede corrections by cleaning out weak hands. Bitcoin has repeatedly surged on short squeezes over the past two years only to relinquish gains later as volatility subsequently declines.