Bitcoin News Today: Bitcoin, Ether Near Short Squeeze as ETH Shorts Hit Record High

Bitcoin and Ether appear poised for a potential short squeeze as traders amass record leveraged short positions on Ether, with speculation growing that the market may be positioning itself ahead of the U.S. Federal Reserve’s Jackson Hole symposium. As of August 12, 2025, Bitcoin traded near $116,000, having bounced from a recent dip to $115,000 amid intensified short-term volatility. The asset’s price action is now being closely watched for signs of a reversal, with traders on social media platforms and analytics tools highlighting the concentration of short positions as a potential catalyst for upward movement [1].

According to data from CME Group and Barchart, speculative traders have constructed the largest-ever leveraged short position on Ether, signaling a sharp bearish sentiment among market participants [1]. This record short position is seen by some as a potential precursor to a short squeeze, particularly as Bitcoin trades near key resistance levels identified by CoinGlass and analysts. A breakdown below $116,500 could trigger further liquidations, while a bounce above this level may attract buyers and ignite a countertrend rally [1].

Notably, the broader crypto market has experienced significant liquidations in the past 24 hours, with approximately $500 million in long positions being wiped out according to CoinGlass data. This sell-off has heightened concerns about a potential bearish phase, with traders like BitBull warning that Bitcoin may consolidate between $112,000 and $120,000 in the third quarter while altcoins may see more pronounced declines [1]. Analyst Michaël van de Poppe echoed similar sentiments, noting that a failure to break above $116,800 could mark the beginning of a bearish trend.

The upcoming Jackson Hole symposium is a key event that traders are watching closely. Historically, the event prompts cautious positioning due to its influence on monetary policy expectations. Recent macroeconomic data, including higher-than-expected producer price index (PPI) readings, has further clouded the Fed’s rate-cut outlook. QCP Capital highlighted that traders are likely to remain cautious until Federal Reserve Chair Jerome Powell delivers his speech, with sideways movement expected in the short term [1].

Exchange order books indicate that traders have adopted a range-bound outlook, with dips near $112,000 drawing buyers and rallies toward $120,000 encountering resistance. This dynamic suggests a market in flux, where liquidity is concentrated and volatility could be reignited with a move either above or below key levels [1].

The growing short interest in Ether and the potential for a Bitcoin rebound into these positions has led to speculation that a short squeeze could develop. While the market remains in a state of flux, traders are closely monitoring both price action and macroeconomic developments for signals that could dictate the next phase of market direction [1].

Source: [1] Bitcoin, Ether eye short squeeze as traders build largest-ever ETH short (https://cointelegraph.com/news/bitcoin-ether-eye-short-squeeze-as-traders-build-largest-ever-eth-short)