Ethereum News Today: Bitcoin and Ethereum Trigger $484M Short Liquidations in 24 Hours as Bulls Take Control

A sharp rally in the cryptocurrency market has triggered the liquidation of nearly half a billion dollars in short positions over a 24-hour period, marking one of the largest bearish wipeouts in recent months. The surge in bullish sentiment caught many leveraged short traders off guard, resulting in massive losses, particularly in Ethereum and Bitcoin [1].

Ethereum emerged as the most affected asset, with over $259 million in short positions liquidated as the token approached its all-time high. The rapid price movement was fueled by increased institutional interest and broader macroeconomic optimism, prompting traders to reassess their bearish positions [4]. Some of the largest liquidation events occurred in a single hour, with $120 million in Ethereum shorts being wiped out as prices surged [5].

Bitcoin also saw a wave of short liquidations, with the total amount reaching $45.0742 million in the last 24 hours. The leading cryptocurrency briefly rose above $124,000, maintaining its upward trajectory despite a minor pullback in the following days. This movement forced many short sellers to cover their positions, amplifying the buying pressure and further pushing the price higher [3].

The market turbulence highlights a broader shift in investor sentiment, with institutional activity playing a key role in the rapid reversal. Reports indicate that over $1.6 billion in institutional purchases contributed to the price rebound, signaling a possible trend of increased market stability and liquidity provision from large stakeholders [1].

Vitalik Buterin, co-founder of Ethereum, noted that the network has historically demonstrated high volatility during bullish phases, especially when institutional investors reinforce price action [1]. The recent surge in trading volume and open interest further supports the idea that the market is undergoing a period of dynamic repositioning, with traders adjusting their leverage exposure in response to rapid price movements [1].

The liquidation figures underscore the inherent volatility of the crypto market, where leveraged positions can be wiped out quickly as sentiment shifts. While long positions also faced losses in later stages of the rally, the overall trend remains clearly bearish for short sellers [3]. Analysts have pointed out that this round of liquidations reflects a deeper shift in market psychology, with traders who bet on a correction now scrambling to reposition.

As the market continues to digest these developments, attention is turning to potential catalysts that could influence the next phase of price action, including macroeconomic updates and key technical levels. For now, the dominance of bullish momentum suggests that the crypto market is in a period of redefinition, driven by a combination of retail optimism and institutional activity [1].

Sources:

[1] CoinMarketCap - https://coinmarketcap.com/community/articles/68ab9132dab2954150f8fe7a/

[2] Reddit - https://www.reddit.com/r/CryptoCurrency/comments/1mxxku1/almost_half_a_billion_shorts_liquidated_as_bulls/

[3] PANews - https://www.panewslab.com/en/articles/0zp53x1m

[4] XT.com - https://www.xt.com/en/blog/post/ethereum-shorts-crushed-259m-lost-as-price-nears-ath

[5] AInvest - https://www.ainvest.com/news/ethereum-news-today-ethereum-surge-driven-institutional-bet-future-finance-2508/