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Eric Trump, son of former U.S. President Donald Trump, publicly warned crypto short sellers on his X account on August 8, cautioning against betting against
(ETH) and (BTC). His message emphasized the risks involved, stating that such positions could be “run over” by market momentum. This statement coincided with a significant price rally in both cryptocurrencies, triggering over $208 million in liquidations on the Ethereum market alone [1].The timing and tone of Eric Trump’s remarks amplified market sentiment, contributing to a surge in Ethereum’s price above $4,100. The rapid movement in prices led to substantial losses for short-position traders, particularly in the Ethereum market. This event underscores the growing influence of high-profile individuals on cryptocurrency market dynamics, as retail traders often react to public comments from celebrities or political figures [1].
Historical market patterns show similar outcomes during previous short squeezes. For instance, in December 2020, a surge in retail investor activity led to sharp price increases in several cryptocurrencies, causing large-scale liquidations of short positions. Experts from Kanalcoin have noted that while celebrity influence can spark short-term retail interest, long-term market trends are driven by institutional activity and regulatory developments [1].
Institutional interest also appeared to grow during this period, with ETF inflows reflecting increased confidence in the crypto market. Lookonchain’s analysis of recent blockchain transaction trends indicated broader market impacts from Ethereum’s price movement, reinforcing the idea that retail and institutional forces often converge during periods of high volatility [1].
Eric Trump’s public stance aligns with broader discussions around the risks of shorting highly volatile assets. The event highlights how sentiment, particularly from recognizable figures, can create ripple effects across trading platforms and investor behavior. However, it is important to distinguish between short-term price reactions and the long-term fundamentals of cryptocurrencies, which remain subject to broader economic and regulatory forces.
Source: [1] Eric Trump Warns Against Shorting Ethereum and Bitcoin (https://coinmarketcap.com/community/articles/68983b37d2aecc707a2ad75c/)

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