Crypto Market Booms: Ether rises 20%, Over 750 Million USD Short positions liquidated

A strong bullish rally across the cryptocurrency market, led by Ether (ETH) with an increase of over 20%, has resulted in more than 750 million USD in short positions being liquidated in just the past 24 hours — the highest figure since 2023 for bearish trend trades. According to data from the derivative analysis platform CoinGlass, over 84% of total positions liquidated came from shorts, as major altcoins collectively rose by 10%–20% within just a few hours, starting from late Thursday. ETH Leading Bullish Momentum, Altcoins Are All "On Fire" Ether has surged strongly, surpassing the $2,000 mark for the first time since early March. Meanwhile, Dogecoin (DOGE) and Cardano (ADA) increased by over 10%, driven by optimistic market sentiment and momentum trading activity. Other major coins like Solana (SOL), BNB, and XRP also recorded gains of at least 7%. Why Are Short Positions Being Liquidated en Masse? Liquidation occurs when the exchange is forced to close a trader's leveraged position because the account no longer has enough margin ( to maintain the order. This typically happens when the asset price moves against the trader's expectations, causing the account to be insufficiently secured. When large-scale liquidations occur, it can be a sign of an extreme market state — either panic selling or a massive buying spree. Such "liquidation storms" often lead to a reversal in prices, as market sentiment at this point is easily influenced by excessive emotions. Bitcoin Surpasses $100,000, Market Sentiment Soars The current bullish phase comes in the context of Bitcoin surpassing the $100,000 mark on Thursday evening, marking a historic milestone for the market. Investor sentiment is strongly boosted by information about a trade deal between the US and the UK, contributing to a widespread buying wave. This is the largest liquidation since the end of the weekend in March, when Bitcoin reached $93,000 and caused the bears to lose over 550 million USD in just a few days. ETH Makes a Strong Comeback Thanks to the Pectra Upgrade In April, a similar surge of ETH and DOGE also wiped out over 500 million USD in short positions. However, the current rally has far exceeded in scale, reflecting investors' risk appetite is returning — while also indicating that a large volume of previous short orders has created a "trap" easily susceptible to squeeze )price (. According to CoinGlass, exchanges Binance and OKX recorded a total of over 500 million USD in liquidation, with ETH accounting for 310 million USD and Bitcoin leading with 375 million USD from futures contracts. ETH has been fluctuating within a narrow range for many weeks, affected by a decrease in interest from institutional and retail investors. However, Ethereum's recent Pectra upgrade may be creating new momentum, leading many traders to start restoring their confidence in the world's second-largest cryptocurrency.