- Bitcoin and Ethereum led a crypto rally as easing U.S. inflation data sparked a short squeeze.
- Nearly $684.4 million was liquidated across the market in 24 hours, with shorts taking the bulk of the losses.
- CoinGlass shows Bitcoin saw roughly $294 million in liquidations; Ethereum accounted for about $214.1 million.
- Bitwise CEO Matt Hougan warned that sustained spot ETF demand could push Bitcoin into a parabolic rally and noted ETFs have absorbed more than 100% of new issuance.
- Major altcoins including Solana, XRP, Dogecoin, Cardano, and BNB also rose as short covering accelerated.
crypto markets rallied this week after U.S. consumer price index data eased near-term concerns about Federal Reserve policy, triggering a broad short squeeze that removed nearly $684.4 million from the market in 24 hours. The move sent prices higher across major tokens and forced many bearish positions to close.
Bitcoin jumped to $95,336, a 4.4% gain, while Ethereum rose to $3,322, up 6.8%. CoinGlass data shows Bitcoin liquidations totaled about $294 million, led by roughly $270.6 million in short positions and $23.4 million in longs. Overall market liquidations summed to approximately $684.4 million.
Christoph Rieger of Commerzbank said the CPI print reduced immediate pressure on rate cuts and helped stabilize risk sentiment, as reported by Barron’s.
Bitwise CEO Matt Hougan commented on market demand for ETFs, and said on X “Bitcoin’s price will go parabolic if ETF demand persists long-term.” He compared the ETF-driven flow to central bank buying in Gold, noted that many new buyers have entered and observed ETF flows absorbing more than 100% of new issuance, and warned that sustained flows could thin sell-side liquidity.
Altcoins also advanced as shorts were forced out. Solana traded near $145.36, up 5.0% with about $32.4 million liquidated. XRP rose to $2.17 (+5.6%) with about $6.13 million liquidated. Dogecoin gained 9.05% to $0.1494 with $7.73 million wiped, and Cardano climbed 9.1% to $0.4226 with $2.41 million liquidated. BNB rose 4.99% to $951.07 with roughly $3.14 million in liquidations. CoinGlass reports the single largest recent liquidation was a $12.9 million ETH/USDT position on Binance.
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