Bitcoin and Ethereum Surge, Liquidating Over $250 Million in Shorts
The cryptocurrency market experienced a significant shift on Friday, with major digital assets staging a powerful rally. Shortly after the release of US Consumer Price Index (CPI) data, which initially triggered a downturn across markets, Bitcoin (BTC) surged dramatically, nearing the $80,000 mark.
Ethereum (ETH) was a standout performer, posting an impressive 8% gain on the day and over 5% in the preceding hour. The second-largest cryptocurrency briefly surpassed $2,660, a level not seen since late January, before experiencing a minor pullback.
The cryptocurrency landscape can transform with remarkable speed, often within the span of an hour. Less than two hours prior to the rally, market sentiment was decidedly bearish, with analysts closely watching the US CPI figures as a potential indicator for future Federal Reserve interest rate decisions.
Both Bitcoin and the broader crypto market had been under pressure. Upon the release of the CPI data, which largely met expectations, Bitcoin saw a dip from above $77,000 to a weekly low of $76,000.
However, the situation rapidly reversed. Bitcoin quickly recovered to its previous trading level before climbing to $78,000 and then approaching $79,000, pulling the rest of the market along with it. Ethereum, as noted, was among the primary beneficiaries of this upward momentum.
These swift and substantial market movements resulted in a sharp increase in liquidations for leveraged short positions. Data from CoinGlass indicates that over the past hour alone, more than $250 million in short positions were liquidated, with Ethereum accounting for over half of that total.
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