Bitcoin short sellers are facing significant losses, as they've suffered damages amounting to $161 million following an unexpected 11% surge in Bitcoin's value, momentarily reaching a new yearly high of $57,000.

According to CoinGlass, a well-known cryptocurrency data platform, over $161 million worth of BTC short positions were liquidated within the last 24 hours. Traders who had bet against Ether also experienced losses, with nearly $44 million of their positions being liquidated during the same period. As Bitcoin surpassed $57,000, more than $268 million worth of short positions were eliminated.

Bitcoin's remarkable price surge, climbing from $51,471 to $57,035, a 10.8% increase in less than a day, ignited excitement across the broader market. Despite a slight pullback to $56,000, the leading digital asset remains up by 32% over the past month.

Pav Hundal, lead analyst at Swyftx, expressed enthusiasm about the crypto market, describing it as "on fire." He highlighted the substantial inflow of institutional funds into newly approved Bitcoin exchange-traded funds (ETFs) in the US as a driving force behind the momentum.

On February 26, Bitcoin ETFs attracted inflows exceeding $515 million, marking one of the highest levels since their approval on January 11. Hundal noted that ETFs now account for nearly a quarter of the Bitcoin produced by the network. Crypto advocates such as Tyler Winklevoss, co-founder of the US-based Gemini crypto exchange, and well-known Bitcoin proponent Dan Held, echoed this sentiment, expressing their bullish outlook on the asset across various social media platforms.