Bitcoin’s (BTC) price has soared above the $30,000 mark amid weak inflation concerns in China, causing short positions to crumble and resulting in over $175 million in liquidations within just 24 hours.

The cryptocurrency saw a jump of more than 10% in its value, hitting a high of around $31,000 on April 11, 2023.

China’s inflation concerns have been weighing on markets globally, and investors have been looking to cryptocurrencies as a potential hedge against inflation. Bitcoin, as the largest cryptocurrency by market capitalization, has benefited from this trend, and its price has been rising steadily in recent weeks.

The recent surge in Bitcoin’s price has caused a wave of liquidations of short positions. Shorting involves betting against an asset, and when the price rises, traders who have shorted the asset are forced to buy it back at a higher price, resulting in losses.

The liquidations have been triggered by the short squeeze, which occurs when the price of an asset rises sharply, causing short sellers to rush to close their positions. This buying pressure further drives up the price, resulting in more short sellers being forced to cover their positions, leading to a feedback loop that can result in sharp price spikes.

Despite Bitcoin’s recent volatility, many experts believe that it still has a bright future ahead. The cryptocurrency’s scarcity and decentralized nature have made it an attractive investment option for many, and its adoption as a payment method by major companies like Tesla and PayPal has added to its legitimacy.