Ethereum Jumps Over 10% as Bitcoin Hits One-Month High
Data shows that about $344 million in leveraged positions were liquidated in the past 24 hours, nearly 80% of them were short positions.
Quick overview
- Cryptocurrencies experienced broad gains, with Bitcoin rising about 3.3% to nearly $74,500 and Ethereum surging over 10% to around $2,360.
- The rally was fueled by significant inflows into Bitcoin and Ethereum ETFs, totaling over $760 million and $160 million respectively in the past five days.
- A short squeeze in derivatives markets contributed to the price increases, with approximately $344 million in leveraged positions liquidated, predominantly short positions.
- Geopolitical developments and the upcoming Federal Reserve interest-rate decision are influencing market sentiment and could impact risk assets.
Cryptocurrencies started the week with broad gains. Bitcoin rose about 3.3% in the past 24 hours, trading near $74,500 and reaching a one-and-a-half-month high, according to Binance. Meanwhile, Ethereum surged more than 10% to around $2,360.
The rally has spread across the broader market. Altcoins are posting gains of up to 7.4%, led by XRP, Solana (up 5.8%) and Dogecoin (up 6.7%).
ETF inflows and short squeeze drive the rally
According to market analysts, cryptocurrencies—especially Bitcoin—have outperformed many other assets since the start of the war in the Middle East. A key driver has been continued inflows into spot Bitcoin ETFs.
Over the past five days, these funds recorded net inflows of more than $760 million, with no sessions showing capital outflows. At the same time, spot Ethereum ETFs attracted roughly $160 million, signaling sustained interest from institutional investors.
Another factor supporting prices has been a short squeeze in derivatives markets. Data from CoinGlass shows that about $344 million in leveraged positions were liquidated in the past 24 hours, nearly 80% of them short positions. Investors betting on price declines were forced to close their trades, adding fuel to the rally.
Geopolitical signals and Fed outlook
On the macro front, markets also reacted to possible signs of easing tensions in the Middle East. Donald Trump said the United States is holding talks with Iran, although officials in Tehran denied requesting a ceasefire.
Iran’s foreign minister Abbas Araghchi also indicated that the Strait of Hormuz remains open for commercial vessels that do not belong to countries considered hostile. Over the weekend, two liquefied gas tankers bound for India successfully crossed the passage, marking the first commercial transit since the conflict began.
Even so, oil prices remain elevated, with Brent Crude still trading above $100 per barrel.
Investors are now turning their attention to the upcoming interest-rate decision from the Federal Reserve, which could influence the direction of risk assets in the coming weeks.
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