Altcoins Surge, $800M Shorts Liquidated as Crypto Market Recovers

The crypto market is experiencing a significant recovery, with altcoins leading the charge and delivering double-digit gains. This rally has resulted in over $800 million in short positions being liquidated, marking a substantial shift in market sentiment. Traders appear to be disregarding recession concerns, as optimism surrounding a potential U.S.–UK trade deal and surging institutional activity drive the market forward.

Bitcoin is hovering near the critical $100,000 level, but it is the altcoins that are making the headlines. Ethereum, in particular, has surged past $2,000, reclaiming this milestone for the first time since March. This spike has triggered over $310 million in liquidations tied to ETH short positions. The surge in Ethereum's price is largely attributed to renewed institutional momentum and growing excitement around Ethereum’s Pectra upgrade.

Other altcoins, such as Dogecoin and Cardano, have also seen significant gains, with each soaring over 10%. Solana, XRP, and Binance Coin have posted gains of at least 7%, contributing to the largest daily crypto liquidation event this year. More than 84% of liquidations on Thursday were from short positions, indicating a brutal day for bearish traders. This $800 million liquidation wave is the largest since the $500 million short squeeze in April, underscoring the current bullish momentum.

Several key factors are fueling this crypto market recovery. Record ETF inflows, with U.S.-listed spot Bitcoin ETFs reaching $40.62 billion in cumulative inflows, signal strong institutional demand. Pro-crypto regulation, such as Arizona passing a Bitcoin reserve bill, reinforces the growing regulatory acceptance of crypto assets. Additionally, macroeconomic tailwinds, including news of a potential U.S.–UK trade deal and easing global trade tensions, are supporting risk-on sentiment across financial markets.

The crypto market now shows signs of strong risk appetite. As macroeconomic uncertainty lingers, traders remain watchful, but current momentum suggests bulls have reclaimed dominance, at least in the short term. If Bitcoin decisively crosses the $100K barrier, the next phase of this crypto market recovery could see even more explosive gains.